We're still waiting for the PM company to provide an inspection report on the setout & a rehab estimate for the turn.

He continues to deny he lives there, lied to the police when they came with a code violation and inspection, and most recently overloaded the electrical and blew/snapped the line! 

Inspections are more frequent. 

Look at the PM contract and verify the 8% is all inclusive and that there are not additional charges for placing a tenant, resigning a tenant, inspections, and dealing with vendors/contractors.  

I do have several S8 rentals, while they are generally performing well, there is more paperwork involved in the leasing and the strict inspections can be quite a pain. 

Typically the construction permit expires if there is no inspection for six months (you may want to confirm this with your building department).If you let the ADU become unpermitted and turn around and pull a new permit to legalize it and wrap up the construction, technically it's now a new permit which falls in the 2020-2025 period.

Do you do Move In Inspections that show the condition of the property before? 

We got to know each other, I observed him working and managing his company and crews, while inspected all the resale and rental projects.

You will be required to get a foundation inspection report on top of an appraisal and you are required to pay for both.That is why I said make sure you do your research because if you pay for an appraisal or foundation inspection report and its not within guide lines you will have just wasted anywhere from $650 to $1000.00 non refundable.  

And be sure that your offer can be rescinded upon inspection.