You've just hit the big snag that prevents 1031 investors frequently from entering into syndications. 

Surprised that non-licensed contractor made it through underwriting. 203k are typically underwritten to death - including the GC - exactly to prevent things like this that make them so high risk.

Offer to make their payments to prevent their foreclosure, on the terms that they left the property.

It also depends on what locally is exempt from permits....in central FL a fence requires a permit, locally in San Diego CA a 6' fence that is no load bearing (it's not being used to prevent a person falling over a wall or something similar) doesn't require a permit.

I read that Subject-to completion appraisals have to be written because something unforeseen prevented the completion of the project.

Also, I don't know if this would prevent me from obtaining property insurance?

If mortgage was taken on your'e personal name, it is your "liability".Additionally, when you will need other credit and this will be held against you and prevent you from obtaining such, it will be quite easy to tell lender its for business and provide proof and they will remove it from your monthly liability.The real issue you have, if you transferred deed, you are in violation of mortgage and in default of terms and they can call mortgage due immediately.

Tenants without a washer/dryer will see this as another big moving expense and it may prevent some of them from renting.The benefit of NOT providing them is that they get moved out so you can clean underneath and the hoses are changed regularly.

Do you have any suggestions to prevent tenant breach contract?

If you have equity, and the "unfinished" items wouldn't prevent sale (roof, furnance, etc.)