Have a local investor-friendly realtor give you an after-repaired value, then deduct at least 10% - maybe more - from that, because I believe housing prices in Buffalo are still declining.

These types of banks are a little more susceptible to a strong marketing pitch, with decision in house.At a minimum, you'll make alot of financial contacts that could be useful in the future, and will learn alot in the process.I'm also curious why your ratios are high if you qualified for the loan on your primary initially, and assuming your income hasn't declined.

I can say the number one mistake made is basing a rehab off of the top of the market pricing.In a declining market you want the best product in the bottom 50% of pricing for the immediate area.This shows a great product at a great value to buyers.If you overprice and chase the market down you will stay behind the pricing curve and never sell.The name of the game is sell it quick for a decent profit and move on to the next one and not get STUCK.

And also since he declined the $114K offer, you guys think that I should of attempted to lease option the deal?

Overall #'s:Contacted: 17 timesNo returned calls/emails:  8Showings Scheduled: 8No Shows: 4Applications: 1ZillowContacted by 6 people3 - They didn't return my calls when I told them requirements3 Showings 1 applied and I declined due to terrible credit/payment history & 45 minutes late to showingWaiting to hear back from one couple that saw it late last night1 showing scheduledTruliaContacted by 7 people5 - Out of state phone numbers and don't respond to my emails or phone #'s1 showing, but didn't realize after me stating it 3 times that no pets were allowed1 no return call inCraigslistContacted by 43 no shows1 showing scheduled for today - not expecting him to show up. 

“C” Class properties are in older, declining, or stable neighborhoods, are not the most desirable areas, are typically older properties, built 30+ years ago with much fewer amenities, if any.

I may have to spend some $ on capex to get it sold, 3. as long as it is rented, I'm building equity as my principal balance declines, and 4. frankly, I don't really have a good plan for what to do with the proceeds yet.

Being asked to leave the property is something else, and he can decline to leave.Asking him to clean for showings: also not required beyond what the lease specifies in terms of cleanliness. 

We normally figure $6K for closing costs here in MA.The only risk to these I know of is that sellers might decline your offer because you have very little skin in the game.  

Or do you mean a bank may decline a buy and hold for a conventional loan, but may approve a buy and flip?