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.

You may end up needing to go through the whole foreclosure process which can take a lot of time and cost a lot of money, and you may end up getting the property back in much worse condition than when you sold it, potentially with a squatter in it and months of lost rent, and in a worst case scenario you will be in a much worse position than if you had just sold it outright. 

People are now locating their properties and trying to find people to manage or even if they have tenants, who is paying, who is not and finding the homes to be in sub par condition.

For example a price below where I think it will sell for, attracting more Buyers, but not too low where I'm doing unnecessary work filtering out Buyers who don't understand the market conditions.

In true syndications, a sponsor shares all financials and will do a capital call if market conditions dictate more capital is needed.

Depending on how bad the conditions are, accrued pref may never be paid out and original contribution may not be returned in full.If pref equity's original capital contribution is not returned in full, common equity is in even worse shape.

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.  

As the condition change in construction so does materials.

This is because value-add properties, especially those built in the 1960s to 1980s, typically take a couple of years to stabilize, particularly in today’s market conditions.

Local market economic conditions.