We are stumped as to the legal hurdles though, could someone help point us in the right direction with some of the below questions! 

These legal forms just basically involve the owner and the tenant verifying what is stated on the lease is what is actually happening and that the tenants are current on their rent- Once you take ownership and introduce yourself make sure you let the tenants know your preferred method of contact. 

Zoned commerciallyTherefore our focus moving forward has been on acquiring properties that are exempt from future STR legislation and that can often simply be licensed as legal hotels.   

Advertise it everywhere, FB, CL, emails to buyers of this type of property, friends, family... obviously make sure you are advertising it legally.

What are the CORRECT, LEGAL protocols to make at this juncture? 

Im really new to the landlording game, and im trying to get clear information on how to properly and legally deny a tenant application.

Don't use a contract for deed as you have no legal protection..do the paperwork as a real mortgage like a bank. 

@Manny Cirino it obviously sounds like a procuring cause case....and you should entitled to the commission in the contract plus you have an expiration clause....might be worth it to legally receive your due commish!!

But it was not enforced, hence you got doctors, lawyers and models living in a legal cutout for artists to be able to live and work in the city.

Without that, there is no legally binding, enforceable contract.Assuming you do have a written contract, it should say in the contract how long you have for inspections and what rights you have with respect to entering/inspecting the property.