I now have hundreds of thousands of dollars tied up in a property that the city will not issue me a CO or let me do anything with until subdivision issue resolved (after letting me pull permits for all renovations - separate issue).I have spoken with several litigators and all seem to think a variance granted by city is going to be the way out of this, but that due to a few loopholes in Georgia law, I might not have any recourse with seller for damages.I need a recommendation for a mean damn attorney that is ready to go sue the pants off this guy.

@Travis Simmons, the main issue is zoning.

And then there's the issue of the unit itself being nonconforming.

Or all home inspections find all the issues?

Everyone's house has an issue if you look close enough. 

I am struggling weighting between handling repairs on my own (stressfully understanding the issues and arranging contractors...) as they happen vs buying a home warranty (paying premium and service call fee).

. ;) As in - you're asking questions about a specific higher-level issue while missing the basics.So, basics first.

Last few years insurance and property taxes have impacted cash flow a lot.since the property is old every now and then I have had issues such as leaks in pipes, fence falling, and appliances. 

If this borrower went to almost any other lender, this bank's repair requirements would be a non-issue.

Other issue is your property taxes will go up when you change to LLC as they can assess to current full value.