Opinions on short sale please!

[James Morris]

Looking at a short sale 4/2 townhome thats been on the market since April. They've dropped the price 5 times since then. Its at $54,900. The exterior needs some work - masonite siding is falling apart in many places. We've only seen pictures of the inside and it looks updated - hardwood floors, granite counters, etc. Will look in person soon. Plan is to pay cash, fix up exterior siding, rent or sell. This would be our first property.

It concerns me that short sales can be a long, frustrating process from what i've read. And also there are 3 other townhomes for sale in this small complex. However, one is a similar 4/2 and they are asking $81k. There are also very, very few places for rent in this town. Thanks for any advice!

JM