From their buy at a deep discount from a motivated seller.

I am currently studying books and videos to up my preparedness for when I take some action in the next couple months.In my study of investment analysis, I'm being introduced to investing concepts like IRR and discount rate, which I am finding very confusing as a beginning investor just trying to get one property going. 

Shouldn't be coming out of pocket too much if you're buying at a big discount. 4. you have no idea what these peoples' situations are.

You would probably be buying off the MLS so no great discount, but there are deals.  

If it's straight off the MLS and you're not trying to negotiate a deep discount, or seller financing, or if this isn't a property you REALLY want to have, I might suggest asking a realtor to be your buyer agent and use the standard NC realtor form.

Personally, I don't look at properties around the $300k or less range unless I can get a 40% discount because it can cost 6% to sell a property plus a many other expenses.

@Jonathan New Location, type and condition of the homes make a huge difference but typically SFH portfolios will trade at a discount compared to what they could sell for individually.

Like others have said, negotiate down the discount points or go without the points. 

There are many reasons why people need or want to sell their home for a discount, other than forclosure.

It would seem you would at least need to factor some discount into your numbers to offset the risk.I recognize this may be my own inexperience but I do try to avoid things that alienate a portion of my potential buyers.