What should I offer? REO

[Donald Fresquez]

I'm currently looking at SFR properties in my area to be used as a rental and came across a foreclosure that caught my eye:

Asking price: 66000
Average rents in the area for similar homes: 650
Repairs needed: ~8000

I plan on purchasing on a 30 year conventional with 20% down. What would be a fair offer (it is already priced low for the market not considering repairs needed). I've been reading the site and have a ballpark idea but I would like the advice of the members here. Looking at it as a rental, what would be a reasonable asking price?