Hi, I've been told by a few people not to use the words "wholesale" or "flip" with real estate agents or mortgage brokers when explaining what type of properties I'm looking for.

Looking for bank financing for a buy and hold property.

It might be too much in general and that's what people realize and turn away.Another few tips, when you guys personally get leads, either explain it better to them (say it's no cost to you, if it isn't, which it shouldn't be!)

I was explaining between going between a wholesaler(you) and buyer(another investor) relationship.

By my understanding is that you cannot borrow a conventional loan from a bank for a property that needs to be improved or made habitable.

If so, I would try a different bank because appraisals are very subjective. 

If your analysis shows something is wrong, tell your agent and explain to them why.

I would certainly encourage you to begin interviewing more banks about their "in house" or "portfolio" loan products.  

You don't want to commit them to a one year lease only to find out later that there is something that you don't like, and drives you crazy, that they do.As far as the rent increase, I would agree that you should discuss it with them and explain the current market rates.

That way you can explain what is needing done, and your friend can help with the "feel good" factor , to ensure the contractor seems like a legitimate guy.