HUD home - what should I have bid?

[Hudson W.]

This is my first official post. I am a first time home buyer and was looking at buying a HUD home. This was a very nice home built in 1987, 2 story, 4 bedrooms, 2.5 bathroom, attached garage, pool and hot tub, wood floors, recently remodeled kitchen, and on a half acre lot. Very nice. HUD has it listed for $232k and the county had it appraised at $285. I bid $255k. First, do y’all think I over bid? Home was inspected and it came back that I might need a new roof (due to hail damage, and a entire new HVAC system (original with the home, over 30 years old). Roof $8k and HVAC $6k. Total of $12k just to move into the home. That doesn’t include the 20% down $51k + closing cost. I would be looking at $68k just to move in, ouch! So, I killed the contract. What would y’all have done?