He missed that some electrical outlets were malfunctioning, the plumbing in the shower was not working properly, the power box was old and outdated, the AC was not working, etc. - Don't be afraid to make sure everything works well and if it doesn't, don't be afraid to ask them to fix it or ask the seller for a credit.

@Brandon Mitchell I work full-time as a GC in the Twin Cities and Minneapolis has a solid information database for properties within their official city limits.

I'm not asserting this is the proper way, but it's the procedure we've been using with our commercial tenants. 

Its not the end of the world if you cant officially market it as a 5th bedroom.

You could have it framed and let him lay the floor boards-assuming he is skilled and will do it properly.

Usually when those conversions happened utilities were not split properly especially since no building permit or proper inspections of the quality of the conversion work performed.

Do I have any action I can take against the previous board for their clear failure to manage the building finances properly?

It's been a long time question for me whether or not I should continue replacing the water heaters and ensuring proper insulation in the attic, or if I should relocate with a tankless water heater downstairs. 

They can make you remove a bed from a room that doesnt have a proper egress window, but I do not believe they can fine you for a room that has a legal egress window.  

Avoid backlighting - Get the camera as close as possible to the item you want to feature (tenants like to see details).Use proper lighting - Many people find natural, outdoor lighting photographs best.