First Flip Help for a Newbie

[Jason Benson]

Just wanted to check into something. I am currently putting an offer in on a Fannie Mae home. The house is listed at $75k. It recently dropped $37k from $112k. I am not new to construction but I am new to the real estate side of things. I am working with a friend of mine and we both have both have funds coming in. We offered $65k for the house and our Realtor came back and said the listing agent wants our highest and best offer because of multiple offers. Our realtor suggested $80k as a max price. The resale value based on comps is around $175k. Just wanting some thoughts as to if this is a good decision? It's hard to know just getting started if we are being taken for a ride or if this is just how the process works? I have worked out the numbers and we are somewhere close to netting $42k if all goes conservatively well. Thoughts!! Thanks in advance!! Jason