If you finance it with an owner occupied loan, you’ll sign that you’re going to move in within 60 days and owner occupy for usually at least a year.

If both parties agree on terms (price, etc), you could always hire a RE attorney to go over with and explain the contract to the seller before he or she signs for probably a 1/2-1 hour consultation.

He viewed the paperwork via DocuSign the same day, but he did not sign.

So can I still sign a lease and set up a section 8 tenant before I have done the application or inspection? 

No sellers disclosure was signed by me or the seller, nor presented at the time of closing.

The financials are as follows: Purchase Cost:  $247,000Cash Down: $37,000 (15% Down) + $2,500 (closing) $39,500Mortgage + Tax + Insurance: $1,548Monthly Rent: $2,250The house already had tenants who were signed on for the next year we closed July 25th, their new lease started July 30th and runs through the same date 2019. 

Its a beautiful property in a nice area and the tenants themselves are wanting to sign another 2 yr lease. 

And "for rent" or "fsbo" signs.

If they try and place a lien on the property and you have a signed contract by both parties documenting the scope of work in it's entirety, then you are in the right (as long as you paid them).  

No increase in rent or change in lease or signed statement was imposed, just written text message communication.