What is current condition?  

Condition. 

BUT one giant caveat: when the landlord is aware of a dangerous condition, the landlord arguably has a duty to kick out the tenants and make the repairs ASAP so that the dangerous condition is fixed.

They don't have a one-off policy that says it's close enough.If the mortgage is more than the value of the home, your deal is subject to third party approval, which means it doesn't have any value.Two things:one, when you're sending in a blind offer off-market, they have no real idea about the condition of the property or the value of the property.

Tell her the place needs to be left in rent ready condition.  

I had told the seller this information and they are really trying to get rid of this property.The property is not in terrible condition at all, it needs minor repairs and a good clean up.

Its more about the condition of the property and the FMV of the property.

It is ordinary and necessary as a real estate investor to travel to the property so he/she can see the condition of the property, communicate with the tenant etc.Therefore, travel to and from the property can be deductible.

It is currently rented out, but given there are no pictures and we can't enter that these are problem tenants.We're worried that we might be getting in over our head since we don't know the condition of the inside.

I have had Medicaid question the sale of a house retrospectively, questioning the sale price because we bought below FMV, however, a letter explaining the price based on the “as is” condition of the house and the expenses required for renovate to get the house to FMV was sufficient.