How much to offer?

[KC Zhang]

Found one REO property that looks interesting, 3br/2ba SFR, listed for $112k, hourses in that area sell for 130k to 150k, rent per month around $1200, house need about $2000 repair

I found two schools of thoughts on BP in term of making offers to banks:

1. Start with 50% of asking price and go from there
2. Start with best and final offer

Also, it is suggested to pay no more than 60 times of monthly rent. For this case, it is 1200x60=$72k

My strategy is buy and hold for cash flow.

How much shall I offer? $70k?

Thanks

Casey