If you just discount the increase you'll never lose money the years the market doesn't support increases.I give discounted rent for the month of December.  

@Siyu Zheng - Why did you offer with no contingencies if you are not getting a deep discount?

A third bedroom or second bathroom in one area is a tremendous increase in value but may not be significant in other areas. 

Cash Flow / Pricing Discount Possibility Expectations?

However, I do get a discount fro m my agent.

Most FSBOs attract investors looking for deep discounts.

Doing the work yourself will take longer, you won't be able to buy supplies at contractor discounts, and the longer you take to get the work done the longer you have carrying costs without rent money to cover it.

That being said, you're still willing to offer them a steep discount over current market rates. 

Bear markets are an excellent opportunity to invest and buy stocks and real estate at a huge discount.

This requires buying at  severe discount.