I have tried to wholesale an REO recently. The bank was asking 174k and the market value of the house was 235k. My initial offer was going to be 160k. To make a long story short, I was given purchase contract by the agent representing the bank. The contract had an option fee of $150 for 15 days. I was told that I would have to show proof of financing from a lender. I had to figure out how I would show the home without the agent being present. All in all, I backed out because it was too much risk involved for me. I later learned that someone else submitted an offer at 160k and the bank turned it down.
I am not saying it can’t be done, it was just more than I was willing to get into.
Looks like a great deal to me based on your description. Offer 470 but plan on selling at the %550 price. Appraisals can be garbage, price by the competition.