Is it structurally compatible with your proposed change?

And they're demanding that you fork over $X without explaining the nature of the problem and what steps they took to resolve it.Sounds kind of hinky to me.

All code violations attached to this property have been resolved.

Procrastination is a destroyer of destiny and we all fall prey to it...I resolved this by DOING IT NOW and not LATER...and it has helped me a lot...

If you don't have an official contract, I would add a contingency for the owner to resolve this issue.How much would removing the roof and reducing the size cost?  

Needless to say, if we couldn't resolve this amicably with all parties involved, I would also be serving the 10-day Notice to Comply, to bring the tenant back into compliance with the rental agreement.Don't remove the co-signer unless the tenants can qualify to rent the unit on their own.

Then come back and make a low ball offer with a clause "subject to seller resolving the encroachment issue with the neighbor."  3.

I am nowhere near you, and yet I have a recommendation: It’s not about finding a person, it’s about finding a compatible team.

Does anyone have experience in these situations and came up with a way to resolve the issues?

I don't know if you ever resolved this situation.