@Jacob Patterson Start here:http://www.irs.gov/taxtopics/tc701.htmlI'm not a tax attorney, but it seems fairly straight forward to me.

@Hattie Dizmond Thanks for that information I will remember that If I buy a REO property, but in the meantime I will do some research to see if there are any other ways to find deep discount properties.

Also some strong places where zero discounts are made.

If you plan on submitting a lot of offers, find an investor friendly agent, be straight-forward... and have your ducks in a row (IE: proof of funds, desired locations, know how much you need to make, understand how much work you are willing to do, etc).  

There is definitely equity in the property, especially if I can acquire B for a discount.

Would you accept a $50 discount for the 2 year commitment?

The manager that handles the bulk of my portfolio gave me a discount from 10% to 8% once she started managing more than 5 units for me, cutting that cost by 20% for doing business in bulk.Hope that helps, best of luck.Jesse Waters 

Crazy-town.For every flip tax that stops a flipper, there is a buy and holder to take advantage.For every condo that can't be converted, there is an opportunity for potential TIC.For every tenant under rent control, there is a discount (sometimes significant) built in to maneuver to full market rents.For every migraine created and ridiculous law implemented, there is another long-term millionaire made.

But then they credit that cost back to youThen go on ebay and buy a 10% off coupon to get an even further discount.

I have seen manufacturers discount their product(s) up to 75% off because they know they are competing for the business.