I recently purchased a home that didn’t have heating/cooling on the second floor so I was able to negotiate a discount.

Let’s say you discount it 50%, $250k for $500k value it starts great (100% return, but rate or return after would be 2 times the appreciation while at 80% LTV the return be 5 times the appreciation.  

You will still end up paying the current rate, but you will maintain your prop 13 discount.  

@Jonathan GreeneI think there's a tremendous opportunity for wholetailing right now.  

As a First Time Home Buyer you can get all the Financial Discounts and Low Down Payment.

If you plan to originate and sell, to get yields into fair market territory, you'll be discounting your paper, meaning that your margin on the home will need to be high enough to absorb the discount and still produce a better return than just outsourcing the lending process.

My only comment would be that C class properties are not worth the discount you’d get at acquisition.

We've seen a tremendous uptick in interest for secondary lien positions HELOC's and fixed second mortgages but many for loan amounts above the new second mortgage pilot program maximum.

I am going to use Seth Williams advice on my next purchase and send letters to several neighbors offering a neighbor discount.

because he uses my complaints against me when I'm not truly upset given the discounted purchase price.