Wholesaling REO Short Sale with no Equity

I’m trying to work a deal with a Bank Owned Property with no equity. The former property owner owes 749,00 and the bank will not go lower than 539,000. The house is a vacant 2006 3 family, that is in perfect shape. the ARV is 669,000. Although the property has no equity, it is still selling below market value. (the bank is making this deal difficult, I’m bout to walk away)
Is this a good deal? Furthermore, in the future, if I come across a deal where I’m dealing directly with a seller who has no equity but is willing to sell me a prop cheap, does the property not having any equity hurt me in any way, being that I would want to whole sale it to another investor. How would I handle this type of situation.

Why do you say there is no equity? If the bank is willing to sell for $539K and the ARV is $669K, seems like there is quite a bit of equity in this property for a potential buyer. Is there a detail you left out?

BTW, if the property is an REO, then there is no mortgage loan to short. The bank owns the property free and clear.