I can show you deals where an investor bought a vacant building and is taking over a 6 figure haircut because the property is taking to long and costing to much to rehab.Buying something cheap doesn't make it a deal.I have found that totally vacant buildings are much more of a challenge and the highest risk versus a building that is performing on some level.

THink about it from the investor's standpoint:  they would put up $4m, get 8% pref, then when you sell for $4m, they take a 35% haircut?!?  

Lots of talking going on during haircuts!

Stocks are going to see a 20-30% haircut sometime in the next year, we're due.

Typically selling a single family home or single condo unit occupied your valuation takes a haircut because you will be selling to an investor rather than a owner occupant.

Banks are just not willing to take a haircut on what is owed.  

Lots of options on the commercial side of things, and you will pay your loan of faster than if you had a residential with the same 20 year term, which is important as you will have paid down more in 5 years than you would with the other, just incase you need to sell and take a haircut.

While Greece has already gotten a haircut on its debt, it is still at an unsustainably high level (partially due to the fall in GDP), even if moderate growth is achieved over the next decade.  

Older houses with alot of rehab work need a haircut of 20% sometimes.Realize if a house is on the market for over 90 days, the listing is stale.Fire your realtor.If you do the rehab work, you need -excellent workmanship, -top kitchen and bathrooms, -maybe make the master bath larger.Women buy houses. 

Depending on their guidelines, they may be able to count the rental property income (after a haircut) against the rental property debt.