I generally don't recommend holding real estate with all cash unless there are extenuating circumstances.

She already works, but now will have her regular low wage job, schooling full time, and will be getting a part time job added to her schedule. 

Many times, they provide these types of documents for their members.

I am new to real estate, how would you suggest I start to assume the loan?

You will need to get a local, rockstar Realtor, contractor, lender, and property manager.https://www.biggerpockets.com/blog/core-four-real-estate-tea...I invest locally in Columbus, Ohio

Two - In my due diligence, it looks like the only real option to make this unit legal is a special permit and variance, therefore, causing me to update the whole building with sprinklers, fire alarm, and meeting stretch code (certainly not enough meat on the bone for this route).  

From ruins wrought with wear and time,I craft anew with plan sublime.Rent and reclaim in endless spin,Repeating cycles once again.A method veiled in night's embrace,What strategy sets such a pace?"

And if they are good people and stay with you a long time you should appreciate them.

We check it 1-2 times per month and remind tenants to keep up with it. 

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?