Seeking advice....what now?

[Ben West]

My first potential aquisition!

I've been watching a REO for a while now. Last week I finally called an agent to view the property.

The house has been on the market for over 400 days, but they just recently lowered the asking price to 114k. The house should appraise around 155k...have yet to pull comps. Its a 4-2-2, buy & hold is the strategy.

The house needs a lot of work.

My question: Whats the next step?
Is this when I should get quotes from contractors to make sure that I haven't screwed the pooch on my estimates?

Or...do I submit my lowball offer (I was thinking of offering 80k) and wait to hear back from the bank?

Input would be much appreciated. :)