What to offer for a rehab for flip or hold

[Leland S.]

Hi - My first house offer coming up soon. It's a trust owned property passed on by deceased parents to their children. The house needs a real good inside/out cosmetic update, maybe some walls modified etc. Property is in Nashville TN area. They are asking 210k but the tax assessment value is 166k. It looks like other properties on the same street that are more modern interior (not fully updated) are selling at $128/sqft to $173/sqft for a more updated interior except outdated kitchen and bathrooms. I was thinking of offering 170k which matches cost/sqft of two other units that I mentioned before, little more updated. I'm assuming I can sell it for $250k after a good repair. I feel like i'm pulling numbers out my backside and don't want to get shafted. What's the best approach to get the best deal? BTW - the unit is located in a high risk flood zone. Flood insurance is required.