If I were you, I would find a Buyer that could buy from the bank at the right discount, then flip the property for a profit.

The bank hopes a owner-occupant will buy it with only a slight discount and then put in the work to bring it up to what they want.

Within this you can create equity by contacting said lien holders and negotiate playoffs at a discount if the lien holders is agreeable.

I think the biggest weakness is having the tenant do repairs in exchange for discounted/free rent.

The discount is for maintenance, taxes and insurance from the perspective to justify a lower price.

This appears on the 2nd mortgage agreement which records the discount received.

The typical investment ratio would be 50% of your purchase price (which was likely a discount).

I notified him of the discharge and since he had long walked away from the property he was willing to sell at a discount.

In a discounted pay off situation (AKA short sale), the lien is not fully satisfied, but the negotiations with the lien holder bring about a payment to the lien holder sufficient for that lien holder to release the lien; a release document is what you'll then get and that can be recorded.Once all liens are paid off (in full or as agreed), you get to keep the net proceeds of a sale (and pay income taxes on your net proceeds), if there are any.

However, I get a discount on Sherwin-Williams through our REIA, and my contractor also gets a good price on Behr.