I think you might find landlords willing to pay 18% to 20% if you could save them say 5% on all repairs (should be easy with your gross discounts) and guarantee 98% economic occupancy.  

Equity value through DP and appreciation will put you deep into negative cash flow.Find a multi unit that will be lower risk having multiple tenants.

Hi Tom.. search BP forum and you'll find in depth answers, but on avg it is (assuming up to 1500 sq ft)$35/ft (DIY and buying materials on discount)$50/ft (hiring out most stuff, medium grade finish)$75/ft (high end finishes; hiring all work out)Exterior.. if brick.. powerwash and repoint.. look around online/in neighborhoods (esp when it warms up)..

What I mean is I try to buy distressed properties at a discount that need Rehabbing to force appreciation.  

And, some may also argue that getting SFRs at a steep discount is much more readily do-able than finding commercial buildings at a similar discounted percentage.They may also argue that: it's totally worth the trouble getting there by SFRs instead.So yes: it's personal preference.

On a a/b/c level property, you wont get a massive discount AND be able to buy using FHA. 

I would love to sell properties at an extreme discount to rehabbers.

To me this would point towards them having just moved into a new home, which means they are unlikely to sell at a discount.

Most investors that use the BRRRR strategy are looking to purchase distressed/poorly managed properties at a significant discount (below the Market Value).  

If you have the property for a severely discounted price, then the seller has a high level of motivation.