I took your question to mean you bought the note at a discount, and the proceeds were more than you paid, but still less than the total amount owed on the note.

@Chris Scott - My thoughts)1) You could hire an experienced realtor who can offer good visibility, access to the market, and fetch you a good price, which will pay for the commisions itself2) If you wanted to, you could try to sell it over lower discount brokerages.

Since I, the buyer, am paying for the probates, the seller and I have agreed to discount the sale price by the cost of the probates.

It's full of all the ways I or friends of mine in the business have been finding property at a discount. http://www.biggerpockets.com/files/user/Licwidsand...I have been giving this presentation at various clubs in Southern California.

So I would show the seller all of her options:Listed with an agent on the MLS and discount it  severely, Pay about 10% for the cost to sellLease it out as is and wait for some appreciationSo what do you want to joint venture where you bring money to the table to fix it and resell it and pay her all the equity possibleTo do a joint venture with a lower equity deal,First you buy it subject to the existing financing and give her a note for her equity and fix it then resell it with an agentLet's say you want to 10,000 on the joint venture135 ARVOwes 109Sales cost 10% or 13,500I don't know what the repairs areRepairs plus sales cost plus costs to sell equals X135 minus X------Compared to Wholesaling deal .7 times ARV minus repairs minus wholesaling fee

Is that feasible to explore in your situation (naturally you'd also have to offer some kind of a discount to the tenant).Even if its just for a future tenant something to think about - that way, the tenant can "use as much as they want" - they're accountable for it, and generally (IMO) will think more conservatively wheras when the landlord is paying, you may (and certainly NOT all tenants but there are some) who won't care - they'll crank up the heat and open a window on a -20 degree day :)

I am planning on trying to get a 20% discount on price and put 25% down so finding a seller that will meet my terms to make my math work will probably be the hard part, but I figure it takes work to make it work! 

It also in many towns has excellent access into Manhattan which cannot be discounted.  

Am I actually better off because I have the money in my pocket to go invest in these newly discounted houses?

Will lenders/appraisers discount the remodel work due to not having permits vs. having engineering sign off?