Purchasing REO for first rental property

[Jason Lam]

I found a REO that looks like it only needed a little bit of work to be rent ready. At its list price it doesn't meet the 1% rule and would only cashflow $82/mo with a CoC of 2.52% (Thanks BP calculators). This is obviously terrible but since its an REO I was thinking I could put in a lowball offer of about 80 cents on the dollar and it would cashflow $250/mo with a CoC of 9.22% and if all goes well I could do a cash out refi and still cashflow $100 with no money left in the deal. This I feel is pretty good for my first deal if it all works out. However my realtor threw me a curveball and said that the listing says "ALL offers must be at least 100% of the list price and no concessions and as is". Should I push my realtor to submit the lowball offer to see what happens?