So they would only get $225 which is a little low so some realtors may pass up your rental so show one's that give a higher commission.

There is a federal law passed a few years ago in response to blaming lenders for the 2008-2011 crash. 

We have never had issues passing inspection (initial or annual).

@Derrick Powell  Keep in mind if you sub meter and pass the water bill on to your tenants vs you paying them now; you have essentially raised your rent wit no benefit to the tenant.

Do you think I should try anyway or just pass it up?

Because If they were to entertain it at all they would at the very least want to put in a subordination clause into the loan. 

I threw around the idea of making a $20,000ish offer but decided to pass. 

There's a lot to go through, so take your time.I always give the advice of staying active on the forums -- lurking and reading is great, but you can get a lot of great feedback by posting questions, so don't pass that up. 

If the fixed costs jump like they often do after a property reevaluation, I pass it along. 

In the unfortunate event that a case is filed then proceed the lawful way....keep in mind, the tenant you offended is simply going to find another S8 friendly apartment...why would she waste her time with fighting with you/trying to get you to rent to her...doesn't make sense...so this will pass by IMHO.Also be easy on Dad, he was just trying to help :-)