Specifically, I think they should arrange a discounted sale even if that means they lose money.

“What is a cap rate” is an easy inquiry. it’s the specific rent data questions you have that will likely not return anything accurate. 

New investor here, looking to get started on flips and value add projects in the Denver area.After spending many hours buried in property records searches and financial spreadsheets, I've determined the best way to move forward is to enlist an agent who caters specifically to buyers looking to capture value from rehabbing run down and distressed properties. 

I would not consider this without discussing it with both an attorney and CPA specifically familliar with the strategy and the risks. 

If your not adding on to the home, or more specifically, adding a bedroom, you should be just fine with the existing system (they won’t MAKE you replace it)... that is to say it should be fine as long as it’s functioning correctly.

This on addresses your specific 2nd qeustion.The question is not whether clearing the jungle qualifies as a preservation improvement, it is whether you are even allowed to recover for preservation improvements at all with that property. 

It does not say “seller to” or “seller agrees to” perform a specific act: it simply states both parties agree to allow the septic design and cost review to be attached to the Inspection Contingency with terms to address cost prior to close.Do you have corroborating written emails that clearly indicate the Buyer has the responsibility to order the design work and estimates?

Their situation was a little specific as they lived in and operated a business out of their home so they signed up for a NNN lease, and the property was dual zoned residential and commercial so we were able to maximize their value.  

Also worth noting, unlike the stock market where you can buy into the broader market and the market price is set, real estate you are buying a single specific deal where prices are not set.

I specifically asked him to talk to the underwriters to make sure the STR would lend.