I do most investing outside the city in delaware county, but i would think there is an inspection they do yearly as a run though to check for smoke detectors and things of the like. ( at least that what they do in Delco ) when they are due, you'll know for sure

One example recently, I had an issue with a tenant breaking multiple house rules (smoking, party, extra guests, late check out) and causing damage and excessive clean up.

(Smoke detectors, window placement, exits, etc.)

Like Non-Standard Rental Provisions, smoke and carbon monoxide agreement, etc. 

They lost the smoke detector.  

Charlotte is a smoking hot market market for MF investing.

The loan is 40k (AKA 40% LTV)Step Four: 52k in the bankStep Five: keep doing the above18k per year for 28k gives a 0,64 GRM; congrats, that's the kind smoking deal i have never seen in real life; maybe in some rust belt cities, but you'd still have to find decent tenants, and they wouldn't pay 1,5k a monthHowever, the net operating income would be better used in this caseCheap properties tend to have as much or even more operating expenses than more valuable ones, and you still have to take vacancies, high property taxes and the 12% for your private lender in consideration

Is it possible to get a "smoking crutch" permit so tenants can make my walls all yellow and stinky as well?

If possible, during rehab, address some things that will help you insurance wise later:- full upgrade of the electical- full upgrade of the plumbing- removal of any sheetrock, trim, etc with lead paint- new roof- address any drainage/leaky basement issues- hardwire smoke and CO detectorsI know not all will be able to be done but most are cheaper during a big reno and will make you a better risk for the insurance companies. 

The tenant’s friend was smoking a cigarette, and it was concluded by the fire department that was the source of the fire.Here’s the rub, tenant doesn’t have renters insurance, let alone one with a fire clause.