Unlisted REO opportunity - advice/strategy?

[Ben Skove]

In the process of making a spreadsheet of the properties in close proximity (2 blocks) of my rental, I discovered that one of the properties is a REO that's been transferred from bank to investor to bank since 2007, finally landing last year in the lap of a bank who purchased it as part of a wholesale package. It hasn't been on the MLS or otherwise marketed, to the best of my knowledge.

Initially they stated it was for sale and were going to give me the lockbox code. Then, they realized that the property was still occupied, albeit in the process of eviction. They stated that they'd call me back in two weeks, post eviction, and let me do the walk-through then.

The exterior looks decent. The current occupants give me a little hope that the interior isn't horrible - a little landscaping, hanging plants on the porch, etc. The bank is asking $15K for it, the ARV is only in the neighborhood of $35K, but rent would be $750 - $800.

Obviously, a lot will depend on the interior rehab costs. Assuming that it's a go, what's the best way to approach this? The market here has definitely picked up and I'd like to slip into this deal without dealing with yet another multiple bid situation. I'm just not sure what the bank's strategy is.

My first thought is just to have everything lined up and ready to go so that I can pull the trigger immediately after the interior inspection.

My second thought is to try to make an offer in the next few days (contingent on the eviction) and inspect the interior after the occupants are out but during the contingency period.

Thoughts?