So I'm not at all discounting the importance of the money.

If it costs $50k to fix and you're only getting a $50k discount, it's not worth it.

They can do this cheaper than I can because they can get discounts of buying stamps in bulk (2million at a time), and I do not have the resources to do that on that large of a scale.

Comps support the price, so its a fair deal, but not a significant discount.  

But clearly by the $10,000 price discounts each month you certainly have a motivated seller.

One additional benefit, I have had luck contacting them after a year or 2 and asking if they'd like to settle the note for a discount.

So what kind of terms would I want to offer them (the purchase price would be around $105k) and what would I be looking at getting after the sale (how much of a discount will I sell it at)?

Also good tip on buying over 1500 at home depot, I was not aware they discount past that threshold. 

The first flips were during a super hot market, so 1 was an easy rehab and the other I purchased at a discount for cash simply resold 45 days later for profit.

I would guess that the number of properties that are owned free and clear that don't need the money immediately may even shrink that pool even further.What if your seller had the ability to sell his/her note for cash at a discount after approx 6 months?