Phase One is having me move into one of the units (at discounted rent) and have me manage the building from there.Anyway, we have a horrible tenant my parents have chosen to remove in order to both make room for me and remodel the unit. 

The way that I am planning on doing this is purchasing and selling vacant land (method mentioned on BP podcast #39 where buying at deep discount).  

Those payments would be deeply discounted because of the time value of money.That is why I recommend that when you sell or broker a note, sell or broker a partial and keep the last few years of payments for yourself.  

This strategy only works if you truly have the discounts you state.

John, the 2nd would be better off taking a discount on the lien because as Chad mentioned on his post, if the 1st mortgage is the one foreclosing and properly names the second in the foreclosure suit, once the property is sold at the auction any junior liens are dismissed/extinguished as a result of the foreclosure action taken by the first lien holder.

You can find tremendous information and contacts on the site.

I want to get 3 more before the year end but as I am getting more experience, I want to have more discount which is even harder to find...:( 

If you think you'll have trouble finding someone, maybe give discount on one months rent?  

They love cash offers and will even discount to avoid dealing with the paperwork that comes with financing contingent offers.

I'm looking to invest with my friend/colleague who does not have too much cash, but is a tremendous worker, dependable, and previously a contractor; he would bring lots of value in turning the property around and wants to live in the home while we fix it up and thereafter (for at least a year maybe two).