Instead of working less at home inspecting work more, get out of "bad debit " then get a financial cushion and downpayment...Allot of Ramsey fans on here apparently.

Furnace inspection revealed cracked heat exchange. 

Be aware that certain cities within Cuyahoga County have point of sale inspections. 

Should I do the inspection before or after the Appraisal ?

The bugs have had 107 years to munch away.I strongly suggest that you include a home inspection contingency in your offer to purchase.I don't know how sharp these sellers are, but I also strongly suggest that you have either a good real estate attorney or a Realtor represent you in negotiations. 

I know I need to get it inspected and all that to get best answers but anything would help!

The agency of the future will have “Home Buying Specialists” who guide a family through the local buying experience and even provide their own extended-stay options and home inspection professionals.

third, you had the HUD inspection (and presumably other inspections?)

They require a $5,000 non refundable deposit and no inspections so for someone out of state like you that's going to be fairly challenging model to work with. 

I can only speak in regards to Minneapolis, but a conversion fee is described by Minneapolis as a type of inspection fee: “When a dwelling is converted to rental property or has not had a license for the past 12 months, it must be inspected for compliance with the Housing Maintenance Code.