The seller has countered with the following conditions:- Loan to value (LTV): 80%- Earnest money held by seller's recommended property management company- Final inspection within 1 day of closing- Commission paid by to buyer's agent is 2% of final sales price.I'm seeking advice on how to proceed, as I have some concerns:- Why would the seller request an 80% LTV?

Those cost in terms of lost rent, but also cleaning out the stuff that was left behind.If your place is managed by a PM, expect a 1 month vacancy (only once I have had no vacancy with my PM manage places, and once I had 2 months as they messed up and held it for a person-friend of the owner-who didn't put down a deposit and then they dropped the ball). 

Don't rush to hold just to hold, not everything has to be held, some sell off and make your 30k - 40k. 

Do you allow a maintenance retainer to be held in escrow?

I only ask because, while it should be communicated, if this is the case, the money may be held back to address other upcoming financial obligations within the Fund.  

I do have properties held by LLCs, and have not found BLOCs to be readily available. 

You can do things like request updated tenant information, new signed leases that kick in at close of escrow, rekey or get key copies, estoppel agreements (outlining the deposits held by the selling owner),  etc.  

I have lived and held through the volatility, believing that we would get to the point of what we are seeing today.

The reason for the delay is because I initially thought I'd invest in low cost areas of California like Fresno, Bakersfield, Stockton, Sacramento, etc (due to being somewhat within driving distance of the SF Bay Area) but I held back because California's landlord laws made me very concerned.I didn't want to end up in drawn out court battles with a renter just squatting at a place I purchased with my cash. 

Would a tenant be held to the lease when it could take longer than the lease to rebuild?!?