You are looking at market value based on market conditions.  

Now all insurance companies have conditions of improvements requirements.

Basically, we agreed to rent to a family with less than perfect credit with the condition they pay a $3,000 deposit (house rents for $1,200 per mo).  

I don't recall out lawyer pushing to get this particular condition into the contract.

There's three single family homes all in great condition and much nicer than the apt buildingsI'm meeting with a bank president (family friend) tomorrow to ask general advice and discuss the deal.

Or, they must present an Approval Letter showing they are unconditionally approved for a loan; this must be verifiable because we will be contacting the lender directly by phone and email.The success rate of reaching closing is much higher if the real estate investors require, as a condition of accepting the purchase contract, that his C Buyers are Qualified End Buyers by my definition above. 

According to IRS PUB 527:Repairs (Expenses): A repair keeps your property in good operating condition.

I got a call from a homeowner who was facing foreclosure, they explained the condition of the house over the phone, the numbers made sense so I made an appointment. 

I'm unaware of the condition inside the units (outside looks good) and what would take them to get up to market rents, but the numbers look good enough to make an offer.  

It's never vacant because of the location and because of the condition.