If it's a single family house, it should be tenant responsibility but if it's a multifamily, that's when you may need to take care of it - it depends on your lease terms and should be stated there so both landlord and tenant understand whose responsible for it.

@Danielle Ronquillo I think the question about the proximity to the cemetery affecting value is somewhat dependent on the local market and sentiment.

Really depends on (1) if the tenant is being honest and hasn’t fabricated the story for sympathy in getting out of the lease and (2) if the tenant is telling the truth the financial condition of the tenant (struggling to make payments vs having $2 million in an IRA).  

They can provide guidance on potential legal options and rights concerning the city’s demands and the lender.Negotiate with the City:Seek Extensions or Variances: Your friend can request an extension on the deadline to comply or apply for variances that might allow the property to meet less stringent requirements.Explore Grants or Subsidies: Check if there are any local, state, or federal grants or subsidies available for renovating older properties, especially those providing low-income housing.Engage with the Lender:Discuss Financial Hardship: Present the case to the lender, explaining the situation and the financial hardship imposed by the new building codes.Propose a Loan Modification: Suggest modifying the loan terms, such as extending the loan period, reducing interest rates, or even deferring payments temporarily.Negotiate a Short Sale: If the property must be demolished and rebuilt, your friend can discuss the possibility of a short sale where the lender agrees to accept less than the owed amount to avoid foreclosure.Explore Refinance or New Loans:Seek New Financing Options: Look for other financial institutions or private lenders willing to provide financing for renovation or rebuilding.

They are however providing discounts to Bigger Pockets members3.

Depending on your investment model, Indianapolis is a great place to start.

He would take out the loan on a multi-family and I would provide the funds for closing and reno as he lives there for 2 years. 

It depends on the buyer, it would not spook me but it may spook someone else.

My partners and I have no problem providing your funds for transactional lending like this case. 

How much notice do you provide when increasing the rent?