Ask bluntly what will be the easiest price/terms/conditions for her to sell to the bank.

Thanks @Ron Herrera & @Charles SmithThe property actually looks great - probably will need to put in 2-3k to remove the ugly wallpaper but the house is in great condition...there's really no other  issues. 

If it's spending $500 repairing a bunch of stuff this year, it's probably going to be $500 repairing a bunch of stuff next year too, just different stuff (depending on the age and condition of your property, I guess), so I'm not sure why an underwriter would add regular, ongoing repairs back to the DTI calculation.However, if you're talking about items that used to require capitalization, that are now allowable as an expense under the new de minimus safe harbor regulations, then yeah - that's not really a repair, it's capital improvement that's permitted to be expensed, so I'd argue that line 19 is technically more appropriate.  

Originally I was hoping to purchase properties that are in move-in condition so that I do not have to spend the time rehabbing them.

And your agent and you will no doubt have a condition of one unit (in 2-4 until property) being vacant (and even a walk through) prior to closing.

They do NOT capture the reality of every market condition, every strategy option, every goal objective.

It is all about know what comps to choose, and how to value or devalue certain features, and understanding the condition scale etc.I would be leery though of placing it under contract with a buyer who has not seen the property.

For something undervalued on the MLS you would probably have to find something that condition will limit the financing options.  

I can't comment on condition of the mechanics but judging from the pictures the exterior looks to be in great shape.

The basics are you find someone who will sell a house at a discount because of the condition of the home or some other special situation like death or divorce.