Input needed

I am investigating a SECOND REO house; exit strategy is to rehab and flip.
Repair=15k (max)
What do you think I should offer. It is a REO.

P.S. Did my first REO offer as investment today and it was shot down by the agent in 25 min. I am wondering if he even notified the seller about this. I thought that no matter how rudiculous the offer is, by law agent has to disclose this to his seller???
My agent said that this is due to some repair work being conducted in the property and may be they want to sell it at full price…

Conentional “wisdom” says:

$190K X 70% - (rehab costs + holding costs+ closing costs)

So, about $118K less holding and closing costs…


An agent is required to present all offers to the seller unless the seller has instructed the agent not to present offers below a certain value. Offers below a certain dollar amount are called frivolous offers.