Bidding war on a MFH foreclosure

[Jeremy D.]

I made an offer on a MFH foreclosure listed at $34k in an up and coming area, it needs about $40k worth of work and will result in $1600/mo in total gross rental income. I offered $38k on the property the day it hit the market since the listing agent informed me that there was another offer on the table. Now we have 24 hours to come back with highest and best. During this time it's my gut feeling that there will be many more offers submitted since 1) the property is such a steal and 2) there has been absolutely zero inventory like this hitting the market in the past two months.

I would feel comfortable increasing my bid by 2-3 grand to help secure the property, but I don't know if I'm bidding against myself or what.

Overall I would be happy getting into this property for $83k (41k purchase price + 40k renovations + 2k closing costs). This total cost puts it relatively in line with the 2% rule and would make it a healthy addition to the rental portfolio.

I am sure others on this forum have had similar situations. Would anyone like to share their experience or thoughts? There is a fine line between being greedy and losing out on a new property, which i have experience probably 5 times over the past few years of foreclosure acquisitions.