I agree with Nathan Gesner but I give a discount.

Hey Scott,You want at least a 15% discount from Retail price, probably more.

But may get a 5-10% discount (from what you would pay retail) or more on a loyal sub they work with.

For more info, check out the law itself AB968: https://legiscan.com/CA/text/AB968/id/2764362 https://www.car.org/riskmanagement/qa/New-Laws/2024-New-LawsAll of the "owner-builder" folks that would get permits for work and then hire unlicensed, uninsured, discount companies to do the work for as cheap as possible will pivot. 

Buy off market at a discount and a property with “good bones”. 

Is it unlikely to buy at a deep enough discount to make BRRR and PM work?

They are often sold at a discount, but they can come with significant repair needs since they are usually sold as-is.### Due DiligenceBefore buying an REO property, conduct thorough due diligence.

Properties Needing Repairs: Offer to buy homes that need repairs in exchange for discounted prices or terms that reflect the repair costs.

If major issues or concerns are discovered, provide detailed information to the seller and either negotiate a discounted price or consider walking away from the deal.Due diligence is the backbone of successful real estate transactions.

The sellers you will be talking to will typically be in a bad situation which is causing them to have to sell their house, and at a big discount.