Quote from @Scott Tennell: What creative financing strategies have you found to be the most effective in today's real estate market, especially in terms of working with sellers or investors in challenging conditions?

Make vacating the unit a condition to close in your offer.

If forced to cure - and it will be a condition of remedy - the tenant can take action against you for damages from leasing an illegal property. 

That will require a rough and final inspection. 2) When installing drywall you will need a nail/screw pattern inspection. 3) You will need to provide 'conditioned air' to these rooms..how are you going to do this and that will require inspection.Will you have to increase the size of the electrical panel?

The STR regulations are very black and white and I don’t see many, if any, clients having issues with obtaining insurance if the house is in good condition.

Selling a home, no matter the condition, is always about price.

The property has been in excellent condition since it was built two years ago, and I’ve lived there myself without experiencing any similar issues.The lease is a standard Texas lease, and I’m seeking advice on how to approach this situation fairly.

Air conditioned air leaking to crawlspace making crawlspace heat or cold depending on season causing more power bill to tenants.

There is a lot of weight on marketing, and a lot of inputs to that cycle.

That's why they call it Sub-2, it's subject to the terms and conditions of the existing mortgage.