Our all in rate for a 2 bed room cabin w/garage and Military discount is $1775.Thanks,

They are thinking they might sell the property as-is and are expecting a big discount since it is dilapidated and very "grandma-like" (if you know what I mean). 

I invest in notes and when I foreclose I market to investors and will sell to them at a discount as its a win win.

And dont discount joppatown! 

I haven't received rent this month.In future, I offer a $20 a month discount for either direct deposit- a pull from their acct.

If the property is not safe enough for a buyer then it isn't safe enough for a renter either.IMO your ethical choices are to sell as-is (at a discount, probably to another investor) or pull together more funding and complete the renovation.

It's possible some of my assumptions are wrong but do a lot of careful research on the taxes and closing costs, and also don't discount what @David Faulkner wrote above.

I'm not sure those are the people that are going to find value in selling (at a discount) to a quick-close cash-buyer (presumably, you).  

Plus if you do certain improvements to the property they offer utility discounts.

Usually at a 10% to 20% discount to market value.