Need help analyzing a foreclosure flip deal / wishful thinking

[John Moore]

There’s a house up for auction today that my agent (a new agent I just started talking to), said would be with $100 sq ft in great to excellent condition. it’s a 2800 sq ft house so that’s 280k  that would make it at the top end of that neighborhood though.  My agent didn’t find the property, I did. And apparently the agent wouldn’t get a commission on an auction site anyways but she’s still helping me.

Problem is I can only drive by it, and can’t see it because it’s occupied. The starting bid is $152k but reserve not met. (On hubzu).  Zillow shows that they have been dropping the price by 10k a month from 250k down to 230k. Plus it’s cash only and places like fund that flip only fund accredited investors. I have no idea how much a bank would lend me, I’m working on making phone calls today.

This would be my first investment and I have no idea how bad a rehab could be. I can’t imagine it would be more than 10 or 20k. Even if it was 30k, there’s still a lot of profit left, right? I know I don’t know my numbers, and that’s why I’m here.

5% buyers premium at closing and 3% escrow at bid approval.

I feel like I have way too many questions till to jump into an investment like this right now, it also seems “too good to be true”  it it also seems too good to pass up but it was he first time I’ve used that website so I’m sure there will be others. 

Thanks for any and all advice. I feel like learning more about how y’all would analyze this deal will help me analyze future deals. Thanks again.

If I need to post more details, I will.