Investors look to purchase properties at a discount, and you will be doing that. 

Plan is to buy from them and then have them live in the house for the rest of their lives and pay us a VERY discounted rent and we could cover repairs etc.

Also, you will occasionally have a tenant that tries to throw you under the bus to the "owners" saying what a crappy job managing you are doing in order to get a discount or some other BS angle.

that part of the reason that they are being sold at a discount is because there is some risk involved, etc.). 

Basically they send it to corporate and they look at how large your order is and what you're buying and they'll apply discounts.

My advice would be to be similar to what Johnathan said and find the nearest city that you feel has a cap rate that you're comfortable determining and then from there discount or add a premium to the cap rate of your city and then your neighborhood.

Look, in life, there is always a price to pay (and there is never a discount).

They did everything and can provide multi-year registered agent (RA) at a good discount.

If they are in a bind and have to sell at a discount to get out, time is of the essence.

If the seller goes for the all cash option and you are able to buy it at such a discount and you are concerned about capital outlay, perhaps a 100% fix and flip loan is the way to go?