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. 

A competent mortgage broker will likely know what the current rules are.So, buying a group of units for a discount might not be much of a discount at all.

Unless you do a fantastic job of self-servicing, most note buyers will expect a deeper discount for a self-serviced note.

You present them with deeply discounted properties.