These are also great markets especially with the discounts we are seeing. 

You can get some estimates from contractors for what they charge for big ticket items like to renovate a bathroom, renovate a kitchen, replace the furnace, replace the roof, etc.All wholesale deals should have free and clear title and you should be able to see the sales agreement before submitting the earnest money deposit.

Then you ask them to show you their kitchen, bathroom and one or two other rooms (basement or living room).

Here are the pros as i see it: easy (no purchase necessary, you know the property), likely prop 13 property tax discount, possibly below current rate loan.  

Also consider adding higher end finishes in the bathroom(s).

Meaning you may be able to do some cosmetic or smaller renovations like bathrooms or kitchens in your duplex when the tenants turn over and those smaller investments can demand higher rents, so in the longterm you may have more cashflow from the duplex to help fund a future investment in another property while you wait for market conditions to change.

Hence, our concerns are discounted.  

The reality is that with the super low inventory we have sellers don't have a reason to give you a 50% discount, so your numbers get squeezed and you will end up leaving cash in the deal.

He still buys at a discount regardless of the strategy.

Like any other wholesale market, I "buy" a loan from a lender at a discount and mark it up for my profit.