@Elijah VanDenBerg, as a percentage of rent for repairs and CapEx, I wouldn't discount too much.

It will affect it a lot, nobody wants to live next to the railroad tracks, expect a significant discount on rent, enough to be noticeably cheap when looking at the listing without knowing about the tracks.

The property value is actually $280K so I’d be getting a huge discount, and plan on putting about 10-15K in cosmetic renovations.

That is way off, for “origination” charges....may be legit if that includes fees for “buying down the interest rate” but that would usually be “discount points”.

Not likely he will discount it that much.

@Bill Brandt, thank you for your thoughts, my plan was to purchase even without the request for a little extra discount for the damage that was found by the inspection.  

If he's not sure of terms yet or wants to make sure he's selling at a fair price, then an agent would be helpful, and he can likely find a full-service, experienced one who will offer a significant discount if he's already found the buyer.       

--but then Buyer is left with legal remedies post closing (if Seller was silent) but when issue raised before closing, Seller has leverage to delay closing or negotiate a discount. 

@Lien Vuong Yes but high equity people tend to not be motivated to sell and are even less motivated to sell at a discount

I think they may get a 0.25% or maybe 0.5% discount, don't remember for sure its been a couple years since I was looking into that.