Do they get a good discount from the box stores?

For many reasons it makes sense to charge a minimal interest rate on all loans, including loans made to trusted friends and family.The imputed interest rules apply to loans that are made interest-free, or at a discounted interest rate that is below market.

If you are not, then you may be better off going further back in time and discounting the values.

We've been in a few of these highly discounted properties and the ones where the 2% rule works.

Also being able to get houses in desirable areas at discount prices is very important.

As for your closing costs if your using a traditional broker / lender then it is what it is - you can ask for a discount on the refi since they just did the primary.I would however be VERY concerned about ANYONE (on the traditional side) who said they will refi you after 3 months - frankly I find that to be 100% BS. 6 months min. and more then likely 12 months.

Right now all my investments, with the exception of three discount mortgages, are outside of real estate.

There are no automatic discounts.

@Brian I agree that I would need to purchase the property at a large discount to make the deal work.

If the discount is the same, go for newer.