After 60 days from filing, the majority of cases will have been resolved.  

Cost of acquisition is low, so the actual return is often lower than low cap rate in a better area, especially considering the lower physical and economic vacancy rates.When looking for multifamily properties you're on the right track to get the market cap rate, but resolve that down to the neighborhood level.

They allow 2 weeks to resolve or ask for an extension.  

Have you spoken with the building department about what to do to resolve to lack of permits?

If you have not learned the laws there is nothing you can do yourself to resolve the matter.  

If you combine this with digging down and sealing the outside of the wall as Account Closed suggested, I would guess that would resolve the issue and prevent additional leaks from starting. 

Send a letter of noncompliance, give them proper notice, whatever landlord/tenant laws allow for fixing a break in lease terms, x days to have problem resolved and re-inspection date, and let them know that any cleaning or damage related to animal in house will be charged to them and not considered normal wear and tear as you have a no pet policy.  

In my legal entities with partners, it defines how dissolution happens and how to resolve the assets.

Lawyers cost a lot of money and trying to resolve this in a more effective way.  

There is a signed contract with both parties suggesting this is the case per the lease.I told my dad at this point, dont sign anything new but just keep following the terms of the old lease until we get it resolved.