Don't discount that off the bat. 

My down payments usually were around 10%.On many of these notes (money I owed previous seller), I bought back that note at a discount.

I just submitted a list of about $2,200 dollars worth of tile and lights to Home Depot to the pro desk to see what kind of discount I could get. 

All provisions and rules of the agreement are in effect when the Tenant moves in.If it is more than a few days, collect prorated rent or discounted rent.  

I haven't found the banks in my foreclosure area(so TX) to discount in that manner, yet.

I would say it depends on where at - what discount per door your receiving MF, how much more you are getting in rent SFH, type of tenants you are dealing with, etc.One big advantage starting out is buying a 2-4 and live in one of the units, allowing all of the advantages of OO and still acquiring rental units.

I was looking at some local postings on cash sellers and discount housing from sellers mainly selling on the point of the buyer acquiring equity.

I see that most flips try and capitalize on these opportunities.With the crash, prices were hit so hard that one could easily find homes selling for a discount readily via MLS- something that requires very little work to access.

Since they are a non-profit organization if I discount the rent below the market value can I gain a tax advantage?

Truth be told, I think we could all but hand-out road map's on it and still people wouldn't get it, telling us "oh, but the whole real estate market is about to collapse any-day-now, oh yeah, big discount's coming, 30, 40, 50%+ off".... uh-huh, yup, sure it is, ok, you have fun with waiting for that.