Talk briefly and honestly about the condition and your plans for the property.

Typically the excuses that are given are the same, 1) Property Tax Increases 2) Insurance Premium Increases 3) Adverse local market conditions.

I think it really depends on where the home is at, the condition, etc that may help you make the right decision.

The additional MTR profit could be returned to owner and trigger beneficial conditional clauses in the loan contracts?

The underwriters will be looking at similar property condition requirements (c4 or higher) of a conventional loan (no deferred maintenance or safety hazards which would affect value).  

Now we're seeing investors pouring money into buying Class C rentals - but, many are getting burned.In our experience & opinion, the main determinant of property Class is not location or even property condition, those are #2 and #3.

Its all negotiable.. and I for one as a high volume seller I negotiate depending on market conditions and profit margins etc etc. 

With fewer buyers in the market due to high rates, investors who move now have leverage to negotiate on purchase price, seller credits, and even off-market deals.The biggest mistake investors can make right now is waiting for perfect conditions.

What condition in the house in?

The "typical" off market seller is someone who thinks their house is in too rough of condition to sell on-market, but doesn't have the money to fix it themselves.