Bigger discount rate (60-75% of note principal balance) will apply to notes that are: new note, no payment history, low interest rate under 7-8%, long term (over 15 years), paperwork issues (dod frank compliance for ex.), undesirable markets, long foreclosure states, and few others. 

If you are including the cost of financing in your cash flow (sounds like you are), be sure at least that you aren't including principal payments as an expense since these go straight to equity.  

He currently has it listed for $160 but that's crazy given the kitchen and bath need makeup.DETAILS:Mortgage Principal balance is $108 (they mentioned payoff amount is maybe $120)they are about $10K behind on the mortage (1 year in default).They went to court last Friday and the judge ordered the $10K to be paid up or they will have to vacate the house in 90 days - they don't have the capital for the $10K they owe - and they don't have capital to move.They've been in that house since it was built.

If you take the profit from the rent and use it to pay down the mortgage principal on the rental property, would that count as reinvesting in the business (that is, would it avoid taxes)?

This will invaribly be different for each rate and scenario but just a general gauge.Even though rates are in the 3's and 4's the monthly payment or what we call the "mortgage constant," on our end is higher because your payment does not consist of just interest, but interest and and 1/360th of principal on a 30 year fixed loan which is designed to amortize/payoff to $0.00 balance by year 30 or 360 months.Typically a rate around 4's will have a monthly mortgage constant of around .50% monthly (6.00% annual) or about $500 per month for every 100,000.Sometimes when the rate gets into the high 3.50% range the MC is around .45% per month ($45 per month for every 10,000 borrowed) so it doesnt vary much while at 4.50% 30 year fixed the MC monthly is around .507% or $50.70 per month for every 10,000 borrowed.I suppose all this technical speak means is that if you borrow money where the outflow out of your pocket is around 6% with interest and principal considered then you'll probably want to reinvest it somewhere else where you can get considerably higher rate of return on this cash than 6.00% atleast this is how I look at it.If you want to make 6% + 6% for cost of funds then you'll want an investment with a hurdle rate of 12.00% or higher cash on cash as an example.

As a principal broker some deals might take 6 months to do but my check is multiple of six figures per deal.

Many lenders frown on this or prohibit it altogether. 2) In the first several years of a loan, most of the monthly payment goes towards interest and very little towards paying down principal/building equity.

Another advantage of higher priced homes, is the power of leverage and the tenant paying off a higher amount of principal payments each month which increases your equity at much higher rates than for cheap homes

which clearly demonstrates we have had the ability to construct much more energy efficient buildings for a generation, but due to inertia and low energy costs have lacked the political and economic will to put it into practice.While I am a big proponent of the Passivhaus principals and the EnerPHit guidelines for retrofit of older buildings - I'm presently working towards my Passivhaus certification - there is some evidence that the target of 15 kWh/m^2 per year, while cost effectively obtainable in most of Europe is not so in parts of Canada - due to our harsher climate.  

They had it for 1.5 years and then sold it to HUD for the amount of the principal owed.