I passed a lead to this agent because the seller wasn't motivated enough for a discount sale, but was interested in closer to a retail sale. 

Whereas a loan from one person to another is much more straight forward (be sure you're still getting an official note drawn up by an attorney here).

For instance I bought this Bosch refrig for $400 from lowes and reason I got it for a discount...it was a special custom order and the person never picked it up and i actually negotiated the price down from $800 to $400 from the manager that day but fast forward.

I don't see how our economy should continue on as it did before.Alexander Roeschmann I guess investors smarter than the average Plebe have discounted a predicted downturn.

@Seth Larson I don’t think the discount is a bad idea if the tenant can and is willing.

My letters are always very straight forward.

Depending on your family's goals, you should consider going straight into multifamily.

If the house has market rate tenants at $1500, $1500, $1500 and the property is in solid condition, it will sell for close to $450k,  if it is in poor condition (needs a roof, siding, windows, has poor electrical, terrible bathrooms) there will be a discount say 90 X monthly rents $405k. 

What was the discount?

If so, then the treatment for Federal purposes is relatively straight forward.