If you place the right tenants consistently, you will rarely have problems.Here's a detailed guide on how to screen applicants: Application Screening GuideSecond, consider inspections at least once a year, preferably at the mid-point so you can catch damages before they get too far.

Did you fail to get a home inspection?

The terms of the financing (interest rate, balloon payment timing) need to make sense for your exit strategy.I would recommend getting a detailed inspection to ensure there aren't any major issues you're overlooking.

There is/was lot of downside potential to buying before the inspection but I can’t think of any upside. 

A little context: the building is structurally sound and they have done major updates such as septic, generator, and sprinkler system, and all mechanicals are recently inspected and tagged.

Just to get started here in Chicago, there is a process through ComEd to assess, inspect, and permit submeters that took me 4 months to approve and install.

That is acceptable by our fire dept in Denver that inspects it once a year. 

Should I move forward with the inspection?

Waive the stupid inspection, but still get one.

To their credit they're being pretty transparent about how this went down and they say they've hired a lawyer to take action against the inspection company they hired.