If I run the numbers at purchasing the property at a 7% discount off asking the cash flow goes to 1171 and the CoCROI goes to 16.92%.

We typically beat the pricing off of the big box stores by 40-50%.I am in the process of putting together a biggerpockets discount.

When buying sizeable or large quantities, I'm curious what your strategy is for negotiating discounts with your material vendors and distributors. 

To keep things very simple, I’m assuming the following: Structure: SFRAsking price: $111,111Desired COCR: 10%Gross Rent: $1,000/monthFinancing terms– preferred is 70% LTV over 15 yearsIn the example below (btw...I'm using a modified version of @Brandon Turner 's 4-Square concept), I plugged in getting the property at a 10% discount and the preferred terms and can only achieve $55/month in cash flow with 2.05% COCR.If I plug in terms of 80% LYV over 30 years I can get a lot closer.If I plug in my preferred terms, and calculate my best offer, I can only pay $75,408 which is 67% of the asking price.

In that model you are benefited by buying existing at a discount.

When the next recession hits, your funds will have been growing and be there to buy at a discount.

Of course if your in a very high dollar area you might be able to work with less since that 30 percent discount would be of a higher resale value.

It's going to be very hard to get strong positive cash flow on properties in that area unless you're getting them at a substantial discount off market.

It sounds like he got a job cancelled and is fitting you in to a cancelled slot at a discount.

There is some discount on them the second time but not a lot.