If the unit has been inspected, but not deleaded, you also cannot do any construction or remodeling in the unit, they consider that unauthorized deleading and it will prevent you from ever getting a lead cert.

That way you don't carry the liability of making a mistake in how you screen for what is legitimate or not, especially since you've made it clear (and your attorney gave you dangerously bad advice) that you are trying to prevent "pitbulls" from residing in your units for insurance reasons.

When rats get poisoned, they separate themselves from the pack to prevent infecting the others.

The construction rehab will be financed by hard money lenders.I would like some advice on this renegotiation strategy if it will work or find out an alternative method to save this deal and prevent the property being foreclosed on.

Lots of people come up with repeated concerns that prevent them from pulling the trigger. 

Unless there is some weird circumstances preventing, but most likely get a higher price with inspection.

b) If indeed the tax payers rights of redemption has lapsed, what is to prevent me from clearing the property and installing one or more septic systems.c) If I purchase a property from the state and the state of Alabama had it in their possession for 9 years, has the taxpayers redemption rights been exceeded.

Being in restaurant business 40 hours a week totally prevents me from that.

It may not even be legal to accept that arrangement in your state so check first but for most landlords, the primary concern is not getting rent, so if you have the rent...That advance rent shouldn't prevent you from screening them though. 

If the unit has been inspected, but not deleaded, you also cannot do any construction or remodeling in the unit, they consider that unauthorized deleading and it will prevent you from ever getting a lead cert.