$162K REO in a $286K neighborhood - worth the investment?

[Kay Stoner]

Looking for a "temperature check" with seasoned REI pros:

I was driving around yesterday and came across a house that's just now getting its "For Sale" sign out front. It's been listed by a bank's listing agent for some time for $162K, and the neighborhood it's in is in the $286K range. Subdivision is established and all other houses are well cared-for and properties are looking good.

I had a look around (the new listing agent  was standing out front, and I asked to have a look around). At first glance, there are no glaring issues (unlike several other properties I looked at earlier), but I'm no home inspector, so there's plenty I could miss.

At $126K below what the rest of the neighborhood is going for, the numbers look pretty good -- but mainly as a flip.

Would any others take a second look... as I'm tempted to do?

Thanks in advance for your input!