At that price point all transactions are CASH. Banks don't care to write mortgages for such low amounts.
I've had buyers puchase homes at this price point on the credit card.
Discount? How much has this been discounted already?
Who are you bargaining with, the owner or the bank?
What is the condition? ARV? Repair costs? If you see where the profit is, others will also. Then it goes not to the low baller, but the highest offer.
Of course, you already know what the standard investor formula is. So go ahead and low-ball and take your chances.