Most note investors will seek a double digit yield so if you write it at 8% and 30 years it could be a 10-25% haircut / if they were not consistent payers then 25-50% discount depending on the stateIn such a hot market why would you seller finance?

Most of the projects we are remodeling I think investors prefer BRRRR which cash flow properties are tougher so I see owners taking a haircut for the faster appreciating urban core. 

If you wake up a sleeping creditor for a payoff on a mortgage long ago forgotten, the creditor may determine that there is no reason to take a haircut and they may even take the opportunity to foreclose the lien.Perhaps buy and hold at a big discount and rent out until the lien expires.

But also remember the so-called "Yuppies" who supposedly used to be poor penniless "Hippies".Who suddenly got a shave and a haircut and bucked up and got jobs and were supposedly making big money.Whatever happened to the "Yuppies" (???)

If they are "taking a 100k haircut" in the loan, it isn't "fair" for me to make a 10k profit by them doing so.  

@Amy McIntyre It's becoming more and more common for lenders to just calculate DSCR on STRs by using Air DNA data (typically hair cutted by 20%). 

Translation: $250000 loan  payment like $1182+$400 taxes +$100 fire hazard +$300 HOA $300= 1982 verses $2500 less a haircut formula sounds like you are in the ballpark.

Hair cutting - interesting.

“Never ask your barber if you need a haircut”

A barber - a haircut.