Will I be able to comply by this law or does the law state that the entire rehab has to go to a GC?

Oh and it sounds like everyone is in agreement that if I find these issues to be true upon inspection, I should attempt to get them to correct the situation to comply with the lease, and if they can't/won't then I should evict?

We closed on this property on Friday December 19th & work started Monday December 22nd.Things Completed Week 1The water is up and running and all leaks were diagnosed and fixed by our plumberThere are 2 units with gas heat & the HVAC company we use came and did some minor repairs to get them up and runningThe other 2 units had electric heat installed this past week as well by one of our in house guys4 new doors were installed in order to comply with fire code regsSpring loaded hinges were installed on the doors to comply with fire code regs (about 50% completed)Installed exhaust fan in the bathroom in the 1st floor rear unitWeek 2 PlanPainting, flooring, and kitchen rehab will start on the 1st floor rear unit. 

Additionally, you may run into some issues with "legal nonconforming" situations whereby whence you remove an existing structure completely and replace it with a new one you will have to comply with any/all setback and permitting requirements that were once grandfathered in. 

This avoids the time and expense of filing and complying with the save harbor Regulation D filings, although by relying on the general exemption for private offering rather than a Reg D filing you do give up your statutory defenses in a case where you are sued by your investors, for example should something go wrong and your investors lose money and decide to sue you.

If the tenants don't comply, then give notice for them to vacate, turn the unit around, and rent at market value.

@Nick Barlow She's looking for a traditional mortgage, and my guess she has something in her history that doesn't comply with the checklist. 

Living there for a year to comply with the lender's requirement to occupy the property as an owner-occupant (typically for a full year with some rare, unusual exceptions) then...3.

It is a passive investment model, where the general partners/sponsors/operators will do most of the job, so you can look for investment options on the markets that looks more promising for you.Credits: Chart below complied by Marcus Millichap, "2022 Multifamily National Investment Forecast Report"

Tenant would probably comply since it would probably hurt their case if they didn't.