If I discovered anything major during due diligence, I could always adjust, but the owner still didn't bite.

I know this is a general question, but we are trying to figure out how to adjust calculations of fair market rents when comparing similar renovated versus unrenovated apartments. 

I will also adjust the repairs/landscaping estimate.

If the walls are covered to the ceiling with that stuff then I'd say adjust your offer accordingly.

But now it's "Save $45/mo by switching to an adjustable rate mortgage!"

If not, adjust/ renegotiate your offer or walk away.

I can proof you almost every property to be a great or horrible investment - just tweak vacancy rates a little, adjust rent, reserves for capex and expenses for repairs and viola you have the bottom line you want - good or bad. 

I have a landscape background so we wouldnt have an issue adjusting the grade to the house and tiering the back yard, adding drain tile etc if we decide to move forward.

The surrounding towns have been adjusting to the news as well.

These loans a generally more flexible but carry a higher rate, or sometimes an adjustable rate, or sometimes they are 15 year mortgage....and sometimes all three.