The note is distressed, & I purchased it at an appropriately discounted price.

Account Closed typically someone isn't going to give you a discount just because they have equity in their home.

I’m willing to get them under discount.

I love seeing the drive of the younger folks, but don't discount having a few more years.

@Ralph DixonOn the subject of tats, would you grant the tenant a one-time discount on the rent if you're actively addressing the issue?

Once you understand this, you start to see why it is so much more important to understand the condition of the property.New investors spend a great deal of time and energy to worry about rents and if they are $50 more or less, but turn a completley black eye to the roof, that has only 5 years left and will take $10,000 to replace (not to mention all the other items).Generally sellers don't discount their dated properties enough to reflect the condition of major components.

also funded with a discount point, so yield is higher than note rate.

@Al Bryant@Todd RasmussenTo dovetail on what Todd said - basically, when you buy an investment property you will either buy it with cash, or buy it with leverage (a loan).There's a lot of consequences from going one direction or another, some of which include:Cash deals can sometimes come at a steeper discount compared to buying with a loanCash deals can sometimes only be possible on certain types of properties (banks will not lend against assets that have too much risk or work needed)Cash deals tend to close quicker...Beyond that, what Todd said is true. 

We would prefer you have the unit and would be willing to offer a discounted rate at $250 per month plus utilities for a long term lease.

And People will try to stretch that discount.