If you give a small discount, it could be a great deal for everyone.

You live rent free, or at least at a highly discounted rate. 

When looking at an investment with value-add rehab, obviously we need to take market cap rate and discount for the actual costs of repairs.

Network, social clubs, chamber of commerce, newspaper advertising , craiglist, car signs, Youtube, investor clubs, school board meetings, church groups, Personal lawyer, mailings, foreclosure lists, neighborhood door knocking, drive bys, grocery store bulletin boards, Trulia, Zillow, realtors, expired listings, RealtorTrac, FSBO, Garage sales, Open houses, Family reunions, Fire truck chaser, Funeral chaser, Floods, Classified ads, Apartment rental listings in newspaper, Current Tenants, Hud home auctions and listings, REO's, Real Estate auctions, Auctioneers, Appraisers, Relationships with Building code inspectors and others in office, Propertry Tax sales, Sheriff auction sales, Soliciting mailings to Probate lawyers, Real Estate seller lead providers, GURUS that have lead programs, Start an RE investment club locally, Hold seminars local on how to buy a home or sell your home. and on and on and on.

Some have more stringent geographic restrictions than others.In general, lenders base the interest rate and loan amount to the Value Ratio on the particulars of the individual deal, with interest rates currently in the 12-14% range and 3 to 5 discount points for seasoned borrowers.Inexperienced borrowers will possibly pay more.

The basics of collecting rent, enforcing policies, and doing showings gets me a discount in rent (I rent in another building owned by same owners).

The bank has no reason to offer a discount, if there's equity. 

Just check out your local code.

Cash-on-Cash Return Cash-on-Cash, the popular real estate investing return, is explained including its meaning, shortcoming, and formulation...Debt Coverage Ratio (DCR) A ratio investors and lenders use to track and compare debt-related outcomes for rental property and measure financial risk...Gross Rent Multiplier (GRM) A quick and easy way to determine whether or not a property is priced in line with other similar-type properties...Internal Rate of Return (IRR) The time value computation that shows the ratio between future cash flows and initial cash investment as a percentage...Loan-to-Value (LTV) A computation related to mortgages that lenders use when financing investment property as a measurement of their financial risk...The Maximum Purchase Price Calculation A calculation investors can make to determine the maximum price they can pay for an income property to at least break-even and avoid a negative cash flow...How to Compute Net Present Value Net present value is explained along with its formulation and use in real estate investing...Profitability Index The time value computation that shows the 'proportion' of dollars returned to dollars invested rather than the amount...Rental Income Property Cash Flow A fundamental look at rental income property cash flow for those of you new to real estate investing...Sinking Fund Factor Know the amount you you must start setting aside on a regular basis now to cover a capital expenditure scheduled in the future...Tax MattersIncome Property Operating Expenses and the IRS Tax Code Learn what operating expenses should be included in a rental property analysis as well as what the tax code says about operating expense deductions...The Recapture Tax Real Estate Investors Face When They Sell The seldom expected recapture tax real estate investors expect to owe the Feds after they sell their rental income property....The Cash Flow After Tax Calculation How to calculate cash flow after tax step-by-step starting at the gross scheduled income...The Depreciation Allowance According to the IRS Tax Code How the IRS figures the depreciation allowance for investment real estate along with its concept, limitations, and formulation...Understanding Rental Property Depreciation and Recapture Tax Rental property depreciation allowance and the recapture tax associated with it are explained...AnalysisCap Rate or GRM?

If they won't insure for cash value they may offer a discounted rate that is cheaper than full replacement.