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

So quick update, I have just let it be for the time being, and have not had any issues except that the other leesee has asked about his cousin moving in in the Spring, which I declined.

Is the area the property is in likely to decline or increase in value over time? 

Areas that are good today can decline and sometimes areas that were once bad get better.

Homes need to be affordable as compared to existing wages but wages cannot be declining and jobs need to be coming not going.When interest rates return to normal, and they will.

This is true for traditional sales in declining neighborhoods as well, as homes start to sell for less and less, it drags down the value of all the homes.

Declining health, partnership splits, tax event, divorce and liquidating assets awarded to them in the divorce decree.I have ran across all kinds of reasons.

Especially, if the property declines in value and now they owe more on it then its worth.  

I could probably do better just outside of the City in Philly but it would be more of a low-income tenant base with a low/declining population, less income per capita and net worth than in the City, higher unemployment and more vacancy.

Given the rising interest rate environment we should be seeing over the next 5-10 years, some of these REITs will see declining values which will hurt the 10%+ dividend rates they pay.