Meet with the permits department prior to closing and consult with a architect.

Consult with your tax pro to verify. 

But my investors are very unhappy at the moment.One of my bigger clients with 250+ units in Binghamton consulted his attorney on the law and she was kind enough to summarize it line by line for him.

If you are married that might be a good enough reason to add you to title (in Texas it is required that both spouses be on title on primary homes) but I'm not 100% on California law (if that's where you live) so certainly consult a Title Company about adding yourself. 

Lender 1 likely identified upfront that rental income would need to be "counted," and in a more consultative fashion set your expectations accordingly.

In talking with my agent, she said that the consultant would tell you what you HAVE to fix. 

@Amanda Thomas -- my Buyer's Consultation goes over all of your questions --  I quoted the FSBO quote because I cover this and so does my Buyer-Broker agreement. 

well my friend my heart goes to you, I would if I were you consult an attorney-they give free consultations, but would def evict right away so you can start cashflowing again, the most expensive advice it bad advice. 

I would def consult an attorney the most expensive advice you can get is the wrong advice so I would consult a local attorney like your doing, I would contact the local REIA(local real estate investors club) & talk to them-they should give you free consultations, & I would call the local BAR & get referrals, if you can get it in your name then you could cashflow it, rent it, the renters could be an issue but TX is a friendly landlord State :)  anything can be rented really, even people who don't own the props rent them out sometime if the owner is absent or not in the loop, much success!!!

I think at this point you should consult with your attorney.