Property was not suitable for financing due to distressed condition and non-conforming status.

These numbers are really accurate and you can almost guarantee you will lease the property (depending on condition) for what the MLS comps show. 

Often times 1 mo rent for new leases, 1/2 month rent for renewals.What is the condition of the HVAC, water heater, roof and gutters, patios/decks, fencing, etc?  

The appraiser will use comp, condition, and history to determine.

As others have said the market but also and I would argue even more importantly the price and the condition. 

As-is is the acceptance of the property in an as-is condition, you can broach your agent about renegotiating but be prepared that the seller will push back and decline or you can walk away and he'll keep your deposit money. 

There's no statutory holding period other than a safe harbor at 2 years under certain conditions. 

Look for gutters and downspouts for condition and how close or far they are from the house structure.

We had to change the entire entire heating and air conditioning  and heat ducts to get enough room to do the re-framing.

I did my own inspection, but found the air conditioning not working.