There is so much we don't know.
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.
Much will depend on the seller and terms of the offer; keep in mind that regardless the form of payment, in the end the seller will get paid. In order to determine a fair offer, review comps with agent, recently sold similar properties in the immediate area, see what the data suggests and go from there.
Cash is nice but it does not impress a seller all that much by itself. A cash buyer can close a week or two earlier than one with a mortgage and the seller gets just as much for the same offered amount so many sellers like cash buyers, but the discount off listed price won't be much different for you vs a mortgaged buyer.