Discount or not doesn’t matter.

It's a very strong seller's market right now, so we aren't seeing a ton of discounted properties.

I recently started listening to podcast started by I believe @Tom Shallcross (please correct me if I am wrong) called "Straight Up Chicago Investor" where they speak with investors on where they have had their success etc. in the Chicagoland area. 

I paid for the initial treatment until it was a non issue. what I learned from this was some tenants who deal directly with the owners are trying to find ways for a discounted rent in my case. this quickly turned into a situation that I needed to evict my tenant as it came to a point he started not to pay his rent. 

Assuming you know RE documentation for your state, the analysis is straight forward; acquisition cost, cash flow, exit. 

I could offer a significant discount on rent to my tenants because this 35% is not really net income or profit but still an expense because of the sales tax.The argument of the state “making up for not collecting state tax” is not really a logical explanation because is not really true.

For real estate, when you sell all the straight line depreciation is subject to depreciation unrecapture and anything above the straight line is subject to depreciation recapture. 

Why would I continue to save in my 401K and why would I not take advantage of this "10% discount" now and pull $100,000 out of my Retirement and invest in good quality rental properties. 

What is the thought process around discounting for the lien risk?

@Benjamin PapetIf you look at the BRRRR concept the idea is to buy a property at a discount force the appreciation by rehabbing it, renting it where it will cash flow, refinance it to get all or most of your money back out and repeat it.