What are the bonding requirements, inspections and CO process.

You also need to be easy to work with and not try to re-trade the deal after inspections for small items.Lenders are looking for experienced and qualified borrowers.

Also, the purchase agreement does have an extended inspection period, a clause that says roommate needs to be vacated, and a portion of the purchase price held in escrow and only will be released to the seller if the roommate does not ruin the property when evicted.Thanks in advance.

But I would definitely get a structural engineer in there during inspection period, as that would be the largest issue.

Speak to your contractors and figure out a time-frame for the reposition when performing your inspections and consider this when you are calculating your budget.

After home inspections there were alot of issues that were found!

Since I was only given an overview of the financials along with those leases after signing a confidentiality agreement, which seems to be typical around here, I would make any offer contingent on not only getting those tenants to sign a new lease, but more importantly receiving the past two or three years' operating statement and tax returns when I can do my true due diligence, including inspection period, etc.What surprises me most is that the current owner bought this property for $950,000 back in 2004, and is now asking $795,000. 

Or get it under contract then do inspection+contractor walk through?

You essentially have to fill out some paperwork, get it inspected, and pay a fee based on the amount spent to convert it.

No matter what your pet policy is, regular inspections to make sure the tenants are cleaning up and not messing up your rental is imperative!