Also, if they are in large complexes, there are limitations and restrictions on what management companies you can use, on financing options (non-warrantable properties may require higher down payment and portfolio loans), etc.

Lenders have to warrant that the property is in a certain livable/marketable condition to be able to provide 203b FHA financing.  

The appraisal value of a property is not likely to enter the discussion as that is only a determiner of loan value and there's always circumstances that warrant a less than or more than appraisal offer.  

Operating without a permit you'll receive a warrant from the deputy sheriff in less than a week telling you what date your court appearance is scheduled for. 

For that matter if you're selling something big enough a reverse exchange could be warranted.2.

@Naveen Kumar  Yes this will impact on warrantable condo guidelines. 

Fix credit issues if warranted.

That contract fell through because it is a non-warrantable property.

This duplex I’m looking into was put under contract in July of 2017 closed in August for 42k and on August 11th a “special warranty deed” was issued for the property. They went in a gutted it and now it’s back on the ...

In this case, you have positive flow for the year of about $230/month which is decent, not amazing - but assumptions are just used as a gatekeeper, to help you suss out which props warrant a closer look.Since this prop passes this most baseline of tests (positive cash flow with conservative estimates), I'd say it's time to look at specifics.