New investor some advice on a short sale

[Suzette Boltz]

I'm new to investing and found a house that we're thinking of using as our primary residence and we would rent our existing home. I still need to run the numbers on our home. 

I learned that it's on a short sale and that the sellers and the lie holder do not get along. Supposedly the bank kicked them out. Recently the basement flooded and as you can guess the sump pump isn't working. We drove by and saw the carpet rolled up to the side of the house. We're getting a look inside tomorrow. 

Since I'm new what would be the best way to determine fair market value? What damage and other things should I look for to consider should I decide to make an offer? I understand there would need to be continues on appraisals and inspections. I'm just don't sure if this is doomed from the beginning. 

It's a nice 2 acre property and I think the asking price is a little high. I did learn that the sellers owe more than the ask and won't accept any offers contingent on selling a home which is fine. Also my realtor says they don't think it will qualify for FHA.