And of course since I was thinking real estate I screwed up and put commercial real estate adjuster instead of commercial insurance adjuster. 

A couple questions I brought up was how can we protect it for them loosing to insurance companies or medical (nursing home) with declining health?

(a) If a condition results from an insured casualty loss, such as fire, smoke, hail, explosion, or a similar cause, the period for repair does not begin until the landlord receives the insurance proceeds.

This ended up costing around $25,000 (not including loss of rent during this time).The painful part of this is that at least as of right now, his insurance is saying this is not covered as part of his policy.

I've had a few contractors give ball park quotes around $10k3) Proceed with the code compliant retrofit. $4k for the engineered plans, $700 for the permit, and (according to the engineer) $20-$25k for the work itself.

The totals at the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment at closing.

When you sell, the remaining sales proceeds after paying back the loan, closing costs, and returning the investors' equity, is split 50/50 or 70/30. 

It cost money to insure, in some cases bond and carry the liability of a job taken.

She listened to some podcasts, read a bit and determined that I wasn’t out of my mind and allowed me to proceed.

I am already licensed and insured as a contractor so that I can pull my own permits.