Paying over asking in Houston and making a profit?

[Shaun Calloway]

I found a deal the other day that looked like this: $100k for 3/2, 1600sf, decent yard, decent location, comps could maybe get to $150-175k, no mortgage - house is paid off. Whats the problem, right?! This house needs a ton of work! Like, you can't pay over $45k and make a decent profit(15-20%) kind of work - foundation issues, new roof, new siding, new bathrooms, new kitchen, etc etc etc. I'm a former contractor, so this doesn't scare me, but I talked with the REA and he tells me he's got an over asking offer O_o So I'm thinking he's just fishing. Next day house goes under contract! With all the repairs there's no way they're getting a mortgage on this place and its heir property that the widow owns with her kids, so she doesn't want to owner finance (trust me, I checked all the boxes to try to make this deal work). So someone paid over asking in cash on a house that needs more work than they can sell it for. All I can assume is they bought it to rent and let appreciate or they plan on leaving as is and slum lording! What's y'alls thoughts on the matter, I'd be interested to hear some Houston investors as well as other areas take on this. Thanks in advance for your feedback!