That's a significant discount --- I wonder if they are seeing a decrease in homes posted.

Distressed properties are real estate assets that are usually sold at a discount due to financial or physical distress.

Can we get a discount?

New construction properties can qualify for significant insurance discounts, but otherwise, I generally expect insurance in this area to run a little over 1% of the property’s value if it’s in decent condition.Feel free to DM me if you’d like a good insurance contact to shop around for a better rate.

You can't put a straight door on a crooked frame.  

Due to current interest rates, many CAP rates are much lower than they should be and usually there is only so much price discount a non-delinquent seller will be able or willing to offer.

Just underwrite a refinance assuming about 30-36% of the money you will receive goes to refinance closing costs at worst, and find discounts when you can.

If get somebody inexperienced at a discount, you are taking a chance. 

My number 1 tip would be to go off market and find owner that wants to sell at a discount / prefers speed and convenience. 

Large down payments or extreme discounts from sellers would be needed to reach cash flow neutral stages.