In the absence of local laws, State laws require the landlord to maintain the unit in a habitable condition--regardless of who is responsible. 

On our leases tenants that constantly make it a habit to pay late always are an issue..

He has responded disputing the charges stating that I knew about the smoking when purchasing the property and thus smoking was considered his normal conduct of habitation in his unit.After further research through the Bigger Pockets forum and Michigan Landlord Tenant Law, there appears to be no set rule around this issue.

Moreover, if this is a rehab project, you may be able to demonstrate that it is not habitable, hence an investment property.Finally, your attorney should be able to ask the judge for a release of stay on the subject property so you can proceed with the foreclosure. 

The unit is in awful condition, likely because there are too many people living in the 2-bedroom unit (at least 3 adults and 4 children), and their lifestyle habits have caused them to break something almost weekly (shower mixing valve cartridge, rails, cabinets, stairs, etc.).  

Geez, I would struggle qualifying for that property...I check evictions, income, and job history, I also take a peak at collection accounts see if its a habit. 

People are depending on you to keep those buildings intact and habitable, so don't take that responsibility lightly. 

So, I just recently revised my spending/saving habits, and now I just reached my reserves goal at $10,000. 

I make it habit to check every single morning what new properties come up on the market even if I am not necessarily ready to buy at the moment.

I don't like that attitude but if someone is doing it just to harm me then I'd consider it.