He's changing the terms of the agreement, and you can choose to accept it or reject it.I don't think it's fair to pass this cost onto the tenant just because you are unwilling to stand up to the contractor.

However, without significant updates, they’re likely to reject your application outright without leniency. 

@Andrae S Wiggins recommend you upgrade your BP membership to Pro to access the BP Calculators to evaluate rental purchases.Play with the numbers to figure out the purchase price that gives you your target ROI.That's the number you'll need to make an offer at, NOT what the seller is asking.Yes, you will get a lot of rejects, but whoever said investing was easy?

About two weeks later, the appraisal came back with a value that was off by approximately 35%, leading the lender to reject the loan.I contacted the lender to explain why I believed the appraisal was flawed.

After going through appraisal and all the applications process, they rejected the loans, over how HOA consists of too many investors vs homeowners, I then picked another unit in different community, did the same process, then they rejected the another execuse over HOA, It costs me several months times of refi and I requested the refund of appraisal fee and didn't get this refund. 

The seller can accept your offer, reject your offer, or counter back with what he thinks it is worth.

My experience has been that although I outline the requirements for tenancy in my properties, both brokers and PMs still send people who would qualify for most property owners but do not meet my outlined criteria; and then are SHOCKED when I reject them.  

I've done a lot of wraps and subtos and highly prefer the seller-finance strategy for a lot of reasons, including offering the opportunity of homeownership to those otherwise rejected by traditional banks.

The courts did not take lightly the forced deed in lieu at signing and rejected it.3.

I know some might disagree.The challenge is if someone applies and meets all your criteria and you reject them, I would hate for you to end up in some legal hot water.