There is no sense in leaving oneself open to such a potential disastrous lawsuit without coverage which could have been remedied with a correctly written insurance policy.

It may save on the cost of smoke remediation and allow you to pull a premium rent. 

Since I wouldn't advise that you go advertising to the tenant that the landlord has absolutely no record of their agreement, you could also see if the tenant would be interested in signing a new lease and you could possibly offer an incentive for them doing so.Again, I definitely recommend speaking with a RE attorney and seeing what remedies they suggest.  

Selling Sub2 violates the due on sale clause which the lender’s remedy is to initiate a foreclosure.  

I find that if I don't like something that I can just mention that I will need to call housing and report the problem and the tenant remedies the problem asap I assume because they don't want to lose their vouchers?  

The remedy as a buyer is forcing them to sell.  

All rights, powers, options or remedies afforded to Buyer either hereunder or by law shall be cumulative and not alternative and the exercise of one right, power, option or remedy shall not bar other rights, powers, options or remedies allowed herein or by law.

Sorry if this question seems remedial but thats where I am in the learning process!

RenovationInitial rehab estimate is $40k but I think the total rehab amount will be closer to $50- $60k.We will be working on the following: tuckpointing and roofs on both properties, bathroom and kitchen remodel, remediation of water damage/plaster damage in investment property. 

Landlord shall use reasonable efforts to remedy the plumbing problem.