The new tenant responded back that she is not smoking and the smell is possibly the smell of her incense candles.Unfortunately I did not have a 'No Smoking Policy' in the lease.  

If you are worried about liability, get an umbrella insurance policy, plus regular insurance for the rental property.  

Curious, was the moisture content of the slab checked prior to installing the epoxy floor?  

Other cities, like Los Angeles have rent control only for buildings built prior to 1970's.

I have landlord policies on each.

If I have a deed with a clouded title, can I sell that property as clouded provided I note that on a contract to the seller that the title is clouded and they are to do their due diligence prior to buying? 

Normally before the fines start accumulating, you should have been given at least two notices prior.

A few things you need to be clear on prior to purchasing.

I have never participated in that type of deal so I don't know how to recognize when that is the case--I just make it a policy to pass on those notes. 

As I see it, you have two major mistakes here:You shouldn't buy a property with a problem tenant UNLESS the problem is fixed prior to closing.