So, they bought an OOS property (usually a freshly rehabbed A-grade house in a C or D area) because the house looked awesome in pictures, and the cashflow looked good on paper.

I'll share what I give to tenants and it should help you with yours.If the Tenants insist the house is a danger, let them move out and start fresh.

Property appraised for 245k; however, it was classified as a c5 which prevented most lenders from issuing conventional financing.I contested the appraisal and the appraiser held their ground, but their supervisor told me that if I slapped a coat of paint on the cabinets (these needed to be replaced due to wood rot) it would be an easy c4.I paid $520 for a new appraisal, contacted all my family and friends, deep cleaned the home and put a fresh coat of paint on the rotted cabinets and over the doors.

I don't work with any residential family-home buyers, so I can only speak from an investor's perspective. 

From my perspective as a potential buyer or a real estate agent who represents a buyer, what I am looking for from my wholesaler partners is that they bring me deals that fit our buy box consistently, always disclose everything they know and can close deals on time.

Just be sure to have someone you trust and knows the area to give you the boots on the ground perspective.

I have 2 STRs in Hilton Head and they are great from a cash flow perspective and appreciationWe manage them ourselves and it only requires about an hour a week total.

From my perspective, you are acting responsibly by wanting to have your contractor inspect the property before finalizing the deal.

Quote from @JD Martin: I allow pets in all of my long term rentals but I do not allow them in my STR for the following reasons:Thanks for this perspective, JD.

Here are some quick notes that I can provide from the lender/broker perspective.