Sometimes you can negotiate a decent discount on payoff to the lienholder after acquiring the property.

I wanted to share how I am beginning to try and save money on these things in 2015 as well as see if anyone in the Cedar Rapids, IA area has been doing any of this or has any of there own tips.I am prior service ARMY National Gaurd so I take advantage of the 10% military discount at Lowes, HD and even Ar Jays. 

Recent flip deals:https://www.redfin.com/CA/Hercules/2051-Lewis-St-9...https://www.redfin.com/CA/Hercules/151-Crabapple-C...https://www.redfin.com/CA/Oakland/398-Adams-St-946...https://www.redfin.com/CA/Oakland/3147-62nd-Ave-94...https://www.redfin.com/CA/Oakland/6330-Camden-St-9...Rental deal - bought a 4/3 townhouse in Dublin last year at a discount.

etc) Typically the properties that you can pick up at a discount, you are providing some value -add over and above what the seller could get by listing on the open market.

I used to think I could buy apartment buildings at a steep discount at the courthouse steps. 

Not over your head at all...Congrats - you have some good ideas....What I would suggest is a prop that is lower than market based mostly on cosmetics...flooring, paint, minor drywall, possibly cabinets, etc...you can get substantial discounts & still get the 1st time buyers rates & programs & such - then hold for a few years & possibly rent it out....or another option would be HUD foreclosures - they have (in our area at least) a 10 day "owner occupant priority" - before the true investors can even bid on them....much less competition....you may want to look into that avenue as well - Whatever your method - congratulations...

My biggest concern is that the banks will not recognize the discounted price I am buying at, and then I won't be able to pull all my money back at the refi.

Acquiring an existing lien at significant discount and foreclosing the lien is another option.   

These are properties (many of which can only be sold to individuals who intend to owner occupy) that can be bought at SUBSTANTIAL discount from market prices (essentially, they are foreclosures from gov't backed loans).

Have you photographers ever thought of making 'special discount' rates for real estate agents to see if that would have any effect?