What's the Rule of Thumb When Buying Short Sale Properties?

[Sheldon Alex]

Hi Everyone, 

I'm looking at a short sale right now. It was originally priced at $180K but now it's going for $200K. The broker ran a comps, with two properties being sold for $255K, one sold at $285K, and one listed for $299K. The subject property has suffered from water damage, and there's a tenant living in the property. 

What is the rule of thumb usually when purchasing short sale properties (i.e. a 70% rule for fix and flips)? And would this short sale, based on the numbers I just shared and the condition of the property, be worth it? I'm assuming it's not. Let me know your thoughts.