I have a little hard time estimating a fair market value given these conditions as I don't know how much to discount the value of the house with these issues presented.

Also, make sure there aren't additional restrictions on the property condition, compared to a conventional loan. 

If the seller misrepresented tenant conditions, consult a real estate attorney about potential legal action.

., location, property condition)?

Aside from the standard BR/BA count and square footage, I always focus heavily on the listing pictures for any comps I pull in my area - finding a comp that's as close to your property's condition and finishes will give you the best apples-to-apples comparison possible.I also wanted to second @Tim Swierczek's input: nobody in Minnesota likes moving in the middle of winter.  

I really liked the condition of the property plus the seller financing helped seal the deal.

Also the 1% rule is about as good as the rule thumb and not based on current conditions or current data. 

Contrary, as long as I can make my mortgage payment, I'll keep the house, even if it is underwater.In this example (which is based on current market conditions), I like microsoft unleveraged better than real estate, but if rates go down to 4-5%, I find an underpriced house, or an area which I expect to have above average appreciation, real estate then looks better.The second reason to invest in real estate is there is a lot of value add propositions to increase returns (closer to running a business than investing). 

Property Managers want to make their lease up job as easy as possible and bringing a property up to like new condition is one way of doing that.

I’ve noticed quite a few price drops in SFH in these areas in the past few weeks due to shifting market conditions.