Most houses like this have to sale at a discount because they are not zoned for what the are setup as.

I think it's more for the larger loan amounts = more profit = less need to require discount points for the same rate/FICO/purpose/DP scenario.Funny thing is they look at where my branch is, not where the house is, so I get to do some pretty sexy things lending in rural CA. :) They spank me if I out-compete a local branch of my same company, though, and it's not hard to figure out that Loan Originator Joe in the Eureka branch pulled Sally's credit two weeks before I did from my Bay Area office, so I have to be careful.Taken to the extreme, I have a coworker that used to be at Wells, and thus could lend nationally (big banks excluded themselves from all blame for the recession, so they have zero education/training/testing requirements and can all lend nationally, which is bonkers but that's another story).

I am a 33yo residential/ light commercial hvac mechanic/ installer who has installed all types of equipment From:(ALL BRANDS UP 5 TON)-Air handlers-Heat pumps-AC unit-Furnace-Coils-Heat water coils-Minisplits- Aquatherm-hot water heatersLooking for a seasoned real estate investor who will take me under thier wing and teach me hands on real estate investments I work for a huge HVAC company here in Richmond who does all type of projects I also have done projects for Habitat for Humanity so I am familiar with the Energy Star programI can offer you HVAC installation at a discounted rate and I have good credit as wellAlso I have been studying real estate investment for some time now I definitely want to get involved with flips and eventually buy-and-hold dealsIf you're interested in doing business with me I can be reached at graysppatgmail thank you hope to hear from you soon

They will cut you some discounts on the fee's in the future. 

We buy discounted properties that a lot of the time have unusable or very dated kitchens and bathrooms which decrease the value.  

I don't see it as a problem or potential advantage, it is only one tree, i get a couple of hundred/thousand contingency discount if i am buying but not significant enough to affect the buy.

Looking through my "buyer's glasses", I would pass on your property, unless I get a discount that is the equivalent of the upgrade plus the costs for rent loss. and aggravation.

They obviously don't want to be foreclosed on but I am curious why they would sell to me at a discount if they can just sell it on the open market for 60k.  

Ask for a discount when ordering!

Sometimes vendors offer discounts to association members as well.