The things that give a rental a value in cashflow are benefits to the tenant in the form of living amities. 

Unless you have evidence the tenant caused the crack, you are out of luck.It sounds like there should be a bead of caulk between the sink and the wall to prevent water from seeping down.It also sounds like you should inspect at least once a year so problems like this don't go undiscovered for so long.

If the gap still exists, is it more narrow today than it was during the lower rate environment?

I have a number in my head after the showing I went to today, but the wholesaler's number and mine are not close.

We toured the property and went under contract the next day.

I would see if you could get seller to pay for the repairs and you raise the sale price by the expected cost of the repairs.  

Mendy,We are sorry to hear about the unfavorable experience you had speaking with one of the reps at RTR.

The competition is so fierce that it drives the interest rates too low.

I don't know anyone in the area, but I would recommend calling the local REIA's president. 

MF in the past has been great but that has been challenging in the past year+