Appraisers value new development based on income, comps and cost to build with heaviest weight on comps and cost since there is no income.

I do not put much weight on what a lender calls something.

I feel like a major weight has been lifted off my shoulders. 

Definitely should use that with some weight in our decision!

We turned it down.What's interesting, in reading the appraisal, the appraiser used the 10/23 transaction as the GREATEST WEIGHT to determine market value of the condo.

Not sure how long you plan on house hacking but I am sure the reward will out weight the cost. 

If the plan is to use leveling cement, and it needed a substantial amount of it, the added weight might cause it to get worse quickly without additional support.If you're good with renting it slightly below the average in your market and most of the rental homes are a similar vintage, I wouldn't mess with it.

If you have it in writing e.g. tenant sent an email to the seller asking them to fix it then that would carry more weight.

You need experts on your side and those people are worth their weight in gold.

With that said, the lowest price is not always the best deal - a good property manager is worth their weight in gold.