He also struggled to sell a tenant-occupied property because buyers were put off by the condition—it wasn’t anything major, just typical wear and tear from long-term renters.

As mentioned above look in the loan docs for reference to 'condition' or 'use'. 

Look at photos, and look for homes that look as similar to yours as possible, in quality, condition, style and size.  

I mean one of these posters was told their "turnkey" property had dangerous sidewalk conditions questioning how "turnkey" the property was and their response was the tenant's don't care about the sidewalks.

What's the condition of the studio? 

Hello, everyone,Phoenix has been the premium market for fix & flip investors, but is it that profitable in today's times since the change of market conditions?

Just look for properties that are not in MLS condition, which is what you are looking for anyway.

Given statement of condition, I would think value-add is the opportunity at hand.

However, with the rates and conditions of any triplexes and fourplexes we could find (we did find one, but it's in the Pendleton Heights suburb of KCMO, so we were worried about it being too dangerous of an area), we were wondering if it's worth it to buy a duplex and rent out the other half to help pay the mortgage, or if it's more worthwhile to rent an apartment and try to save up to buy a residential or commercial MFH later?

(Reason filthy living conditions) Consult a magistrate prior to posting as it varies by state.