Yikes, that bathroom looks like it just needs to be demolished!

There is now a glut of 3 bedroom, 2 bathroom homes, which I like to use for rentals, but most of the homeowners are clinging to their high asking prices in an effort to recoup the paint, carpet, and upgrade work they have done before the sale. 

Create a database of those listing on Craigslist with all relevant info (price, bedrooms, bathrooms, style, etc.) and be sure to note the contact information for the landlord.  

If it makes a person uncomfortable that I don't have my commissioned real estate sales agent's license, and they have months to wait around for a realtor to  list and sell their $200K house at a massive discount for $194K, fine.

HUGE discount probably in the neighborhood of 40 to 50% less than principal balance

So I work for a new home builder, we have 2 bedroom 2.5 bathroom town home community.

Rehab came out to be 33k due to the size (1700 sq ft. with 3 bathrooms) and a decent amount of drywall work.

While researching the property, sales records and owner info, I discovered the seller also owns the house next door to the one I'm interested.This is when I had a thought.How can I get in touch with the owner to negotiate a package deal for both houses at a discounted price?

You are about 5 years late for those kind of discounts in the greater Raleigh area.

As far as how much of a discount they will take, that is usually up to the specific asset manager.