Buying in community with potential REO and foreclosure

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Hello guys,

I am looking to purchase in a condo community as investment property

Community is about 40 units, all 2br/bath, which were initially sold as new construction back in 2004 for price of about $340-$400k

Since then, there has been several transactions in the community in the range of $250k back in 2011-2012

There are currently 3 units available for sale, REO at $267k, and two units $280k and $350k

I am considering one of the unit at $280k (asking price)

What do you guys think in this scenario of demand/supply and resulting price equilibrium aspect of the community when there is clear divergence of where people bought their property?

I feel like buying at $280k gives me good protection since bank is ok unloading at $267k as is, and market bottom back in 2011-2012 at around $250k