Flipping a gutted water damaged house

[Michael S.]

Hi BP!

There is a house listed in my area for sale for $100k. 

Let me quickly explain my market:

Typically there are very distressed properties (1200-1500sf SFH, cape cods) needing ~$30k in renovation for sale in my area for around $150K-160K. ARV's range from $240-280.

The 100k house had pipes burst and had water damage throughout the house. I looked at the place and it has already been gutted. All flooring has been removed, a lot of sheetrock in the ceiling and walls have been removed, much of the insulation has been removed and the kitchen cabinets and bath vanities have been removed. Insurance has paid for the house to be gutted and the mold to be "remediated" but for some reason the current owners have stopped half way through and are selling it for about 50K below market. The way I look at this is that the demolition has already been done and I have a clean slate to renovate and resell. A typical project would include a lot of new flooring, new sheetrock (many of the houses have only paneling that I replace), new kitchen cabinets and new bath vanities anyway so the way I look at it is the renovation cost would be similar (maybe slightly higher) and the demolition has already been done for me (Ill save $1200 in demo costs).

Am I missing something here? Is there someone else I need to be looking at for a water damaged place? I just don't understand why they would almost completely gut the place and then sell it at a significant discount?

Thanks for the help!