Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Consulting a real estate CPA and an asset protection attorney is recommended to determine the best approach.This post does not create a CPA-Client relationship.

There are several good markets in Michigan for this.Also recommend using a property manager to keep your investment as passive as possible and for compliance purposes with Fair Housing Law and local regulations.To Your Success!

What inspections are required vs recommended? 

Highly recommend you DM @Samuel Eddinger and buy him lunch to pick his brain!

I've also held of holding properties in individual LLCs that are owned by one S corporation, which allows for a 60 / 40 split between ordinary income (regular tax) and dividends (capital gains tax rate).With the goal of minimizing taxation and liability protection, what would be the recommendation from more experienced people here?

I would only recommend moving on this if you are comfortable owning it for the long term.

Who are great property managers in Atlanta you would recommend for my circumstance?  

You state, "your lender" - I admire the loyalty but also would recommend you get a minimum of 3 quotes (at least two from mortgage brokers).

Honestly looking at your situation I'm not sure I would recommend you do the taxes yourself,  change of accounting method (F 3115) isn't easy for someone that hadn't done them before these online software companies make things seem easier than what they are, they are good for less complex situations.