Offering on a "short" sale

[Frank Adams]

Ran into a possible deal today. Lender (pretty sure it's a sub-prime) is forcing the sale of a place that I'm familiar with, I flipped it 4 years ago.

Listing price is $49.9, which I'm pretty sure is the face on the mortgage they got in '03.

I'm guessing sub primes use some kind of PMI, right?

The place is still in the borrower's name as I'm guessing they and the lender don't want a forelcosure.

The place isn't nearly as nice as when I sold it, they did some "butt-ugly" decorating that will need re-doing and it needs carpet and I'd sure paint the exterior, but I"m getting off track here.

Any ideas on how much below listing price I should offer?

If their PMI is 20% I'm guessing that the most I'd want to offer is listing price - 20% and let the borrower sign an personal note (with the lender) for the shortfall.

Usually I do straight up all cash deals but I think the price is right and I think I get fix, paint, clean for about $5-$6K and re-flip for $65-$69K, but I'd sure like my ROI better at a lower buy-in.

Come on you short sale buyers, give me a clue here.

Thanks

all cash