Need quick assessment of Short Sale deal

[Danielle C.]

Hello,

I am newer to wholesaling and haven't completed any deals yet. I accidentally have come across a deal that *may* be worth pursuing, however I need your advice.

Property is listed at 159k, however the realtor has confirmed there haven't been any offers yet, so there is no knowledge whether the bank will accept. Coincidentally, it was 169k yesterday. It was intially listed at 219k in september. This is a good area with quality schools.

The realtor (mine, not the selling realtor) stated that two identical models sold in last 90 days for 245k and 259k respectively. She also noted that there is another identical on the market currently for 240k.

Negatives:
a) Backs to a train. I am finding out if the other models that sold do.
b) No basement. I am confirming that other models that sold did not have either. I would assume that since the other models are identical, that they didn't.
c) The house is a really ugly red brick, which of course can be painted nicely.
d) There is a pipe burst in the house, however it is running out of the garage. There is no "noticable" mold, however there is some drywall damage.

I am confirming which bank holds the mortgage to verify seasoning rules. I am also confirming the DOM for the two that sold and the third that is available.

I have been spending all of my time researching wholesaling for FSBO's. I am familar with SS's, however just the basics. I intend on selling retail, however at a deep discount to move it quickly. If value is 240k, I'm thinking selling at 200k. In that event, after HML and other expenses, I'm still making 20k if I use an agent or 30k if can move myself.

Questions:
I would have to use a straight PSA. What are my options if I need to back out after offer is made?

How long of an inspection period should I request?

How much of EMD should I expect or request to put down and when do I tell them I will? After buyer accepts offer?

Any other tips or advice would be greatly appreciated. I am a bit nervous because I wasn't anticipating this. Since the homeowners have dropped the priced twice this week alone, I assume they need to move it and I want to hurry to lock the deal up before another investor does.

Thank you!
Danielle Cage