IMO, you have a pre-existing condition AND a declaration from the current owner.Existing tenants have been there some period of time already.My plan would be to test and correct if necessary ONLY on a move-out.

As I will rent it out, I need to declare rent as income and pay more tax on it.

I wish my rentals did that for me:) Holding the RE outside gives me cash flow every month, and once I take my legal deductions for taxes, insurance, maintenance, and depreciation I have little income to declare as taxable.

It took me a long time to find the owner - and actually I am still one step away:  presently talking with the previous owner - the aunt of the present owner.The ower of record  (name on the deed)  declared bankrupcy and that was recently concluded.  

One of our partners is claiming that this is their way of muscling us into funding some of their remodel; and I tend to agree. 

(I had a hard time with the psychological part - I wanted them gone, but it was probably not financially wise because I had a 2.8% interest rate.)The only other aspect to consider would be if you ever declared bankruptcy.

It keeps my holding LLC from being declared a dealer if I do flips, and it lets me split off the rehab expenses in a controlled fashion so I can have a legit business to hang a solo 401k (that can invest in RE).

At the same time there are realtors who declared " nothing is illegal , you are a whiner" . 

In addition, why would any low income tenant pay their utility bill once a moratorium is declared?

Im the researcher and financial/credit power and he is the muscle, talker and rehab expert in our marriage.