If it was done to code and not permitted, they also could just say to submit plans, pay fees, and have inspections.

well my first post was published before I even pressed submit.

Instead of walking away, I saw it as an opportunity and IMMEDIATELY submitted TWO simultaneous cash offers.

The issue that I'm running into is that the seller hasn't kept up with their rent roll registrations (last submitted was 2008).  

In Cleveland most tenants have CMHA and the process is a solid 8-12 weeks from the time you submit the packet until the tenant moves in if you don't get held up doing work to pass the inspection, this might also affect your decision.  

They often say that they need the exact address to submit to the adjuster for approval or they want to tour the house before they can decide to rent it.

As of now, neither has been submitted for final approval.  

This is a great way to get around the "negative connotation" of submitting an offer with an FHA Loan (as mentioned in the comment above). 

I can confirm definitively that the last transaction from your previous tenant was made on Oct 1st, 2021, and that she submitted no other transaction afterward through Zillow.

Does the lease need to be submitted for their approval?