If a section 8 tenant applies you do your normal background check like anyone else and if they qualify then the local office will schedule an inspection and provide the list of updates, if any, that need to happen. 

My question is what is the process and estimated cost to get the permits myself if inspection goes well?

If your PM does see anything suspicious I would hire an electrician to do an inspection and hold the tenant responsible for not running this by you first. 

As Colleen suggested, I would get estoppel from each tenant as to their full understanding of the lease terms and monies involved, as an agreement for your contract before you close or even get out of inspection period.

SFR property bought turnkey, currently there are foundation issues (newbie mistake, bought at peak of market without an inspection done).

You also have to account for closing costs, inspections, attorneys, etc.When inside the home, since you are so new you won't know what knob and tube is or a lot of other things, so ask A LOT of questions to see how much the agent knows.

He called me and said he wanted to sell it to me and after inspecting the house, I didn't know if I even wanted the house.

I was considering making an offer of 400k or so and let the inspection reflect all the issues then ask for credits since I know he won’t fix them.

I'm also considering fixing the well and getting off city water, this would be a savings of over $50k after all the well inspections, service and water testing.

Tenants can see during the inspection that there is no AC and accept the property as heat only.