We buy discounted properties that a lot of the time have unusable or very dated kitchens and bathrooms which decrease the value.  

I don't see it as a problem or potential advantage, it is only one tree, i get a couple of hundred/thousand contingency discount if i am buying but not significant enough to affect the buy.

Looking through my "buyer's glasses", I would pass on your property, unless I get a discount that is the equivalent of the upgrade plus the costs for rent loss. and aggravation.

They obviously don't want to be foreclosed on but I am curious why they would sell to me at a discount if they can just sell it on the open market for 60k.  

Ask for a discount when ordering!

Sometimes vendors offer discounts to association members as well.

A wholesale fee is not investing however, the better you get at direct marketing TO sellers (as opposed to sitting in front of computer) the greater the benefits you may be compensated for in terms of discounts or higher profit margins.

I only know of occasional 10% off coupons they offer for moving.One way I have gotten more discounts is buying gift cards online for about 10% off of their face value.

You could also ask for a modification (discount) to close without the Lease copy. 

Im not seeing short sales sell at discounts to market values any more.