However, I did not receive and the tenant does not have any paperwork showing the condition of the property at move-in 2 years ago. 

The leasing is a lot of work, advertising, showing the unit, running application and the credit/background reports, verifying the information, doing the lease signing, etc.The first month's rent does encompass everything to place a tenant we don't break out separate marketing fees, it's an all inclusive fee, the first month's rent.Negotiating is up to you and the PM, where the units are located, their condition and also what services are being offered. 

what's your lease say about this (property maintenance/condition/service calls)

It wasn’t the best living space but very comfortable and the best perks is you can essentially live rent free have first hand experience on controlling your asset aswell as dealing with tenants.  

This duplex is currently being rented out, so I'd imagine that it would qualify for conventional lending in as-is condition.

Not unlike builder contracts favor the builder, I want my contracts to have terms and conditions favorable to me, depending on which side of the transaction I'm on. 

I show before/after pictures showing all new flooring, kitchen, baths, etc.You want a good condition rating and don’t assume the appraiser will know that you just replaced the roof, put in new counters, etc.Tell them everything!

@Saji Ijiyemi a primary residence isn't an investment so it is harder to say, if it followed the only $27k repair budget it might save you the other $25k off of buying turn key, but the repair budget isn't set in stone (could change) and if you have FHA financing they probably won't let you buy it due to condition anyway. 

@Bruce ScannellThank you, the properties that I see up for auction that I am really referring to are very nice properties, pretty rich neighborhood so I know that it's not the condition that makes it un-financeable; so I don't know what other reasons it may be.

If any of these cause water to escape fromplumbing, heating or air-conditioning system or household appliance, the Underwriters cover damagecaused by water.