Ask them if you can get an extension if the deadline is coming up and you're close to getting it taken care of. 

Aaron Farr was able to sale it for us for $310,000 and we closed last week.We did run into a extensive list of repairs from the inspector that were unforeseen.

For purposes of this section, the term “prohibited transaction” means any direct or indirect—(A)sale or exchange, or leasing, of any property between a plan and a disqualified person;(B)lending of money or other extension of credit between a plan and a disqualified person;(C)furnishing of goods, services, or facilities between a plan and a disqualified person;

Sounds like you are doing a pretty extensive reno.As with any purchase there is always a risk that repairs cost more or that you get no offers or lower offers than the ARV you were given. 

I'm renewing some for the next year to keep cash flow and terminating others. 3) I'm not licensed or have extensive knowledge on the mortgage side, but it doesn't sound like you're committing fraud.

In that case, always take advantage of the request and negotiate a lease extension that will pay for the upgrade.

Also, my comments are based on my extensive experience in NYC plus the original poster said the hallway is newly renovated.

Owl usually has a pretty extensive collection of trim: https://www.owlhardwood.com/Hope that helps!

You may want to review the language of the original lease very carefully and I always recommend having tenant sign off on the renewal paperwork, even if there are no changes other than an extension of the lease term.

Complete Real-Estate Investing Guidebook, David Crook