But all is and was good.3) First 3 month inspection we could not do a thorough inspection due to the family sleeping and it being dark.  

Certainly get it inspected and make sure everything is up to code (electrical, plumbing), and if not, budget for rehab accordingly.  

you can not make any repairs to the home before you own it and when the bank appraiser comes in to inspect the home will fail.  

Just had the home inspection today that showed a few minor issues that I will most likely have a general contractor take care of such as anchoring the stove.  

However, Section 8 requires inspections, they are picky picky picky about little things, BUT you get regular monthly payments.  

Remember that FHA mortgages have very stringent requirements for condition of the property, and its possible the current owner has gone through the inspection process and found that the property is lacking in certain areas, perhaps in items that the owner is unwilling to remedy prior to sale.Last note: you wrote that the owner specified it would NOT be able to be an owner-occupied purchase... was the property fully rented with leases in place?

Something like I just left you a message in regards to inspection on abc str. make sure there is a email trail.

Would the inspection/permit list "2 kitchen sinks, 2 lavs," etc, or would inspector also check the original single family, and list "3 kitchen sinks, 3 lavs," etc?

Vacancy, turnover, and not enforcing your lease (late fees, evicting, documentation, pets, inspections, violations, and more).

I have a couple of questions-Do you have the property under contract and is there an inspection/ attorney contingency?