I saw a statistic recently that about 40% of real estate transactions in today's market are cash deals as opposed to with mortgages. So there are a lot of buyers out there with the same idea as you.
The attractiveness to a seller of having a cash buyer is that the transaction can close quicker without having to wait on a lender to approve things. No appraisal, no underwriting, etc. In addition, if there are certain features of the home that make it hard to get financing approval - it's a nonwarrantable condo, it needs some major rehabbing, or there are health or safety issues - then you may only be competing against cash offers.
A cash buyer definitely has advantages over the first time homebuyer with a low down payment. Not as much as an advantage over a well qualified borrower with a large down payment, because many sellers would rather get a better price if they knew there was a great chance of the deal closing.
I would not go into things expecting to get a dollar for fifty cents, unless you are looking at properties that need a ton of work and you can properly visualize things. If a property is truly worth it then there will be several competing bids so you will have to keep up with the other cash buyers and not come in too much below those buyers with a mortgage.
That doesn't mean good deals aren't out there. You just have to get a real good Realtor and have realistic expectations.
Best of luck!