This REO seem reasonable?

[Erik Larson]

My RE agent (who is an REO agent for 2 banks) came with this: $130k 3bd 2 bath Vacant for about 1 month all windows busted, needs a full gut and start over he said $35k in work Says He could sell it for $190 to $197k Area of town isn't great, nothing in Zillow in 1 mile sold for over $190, on on the market for 45 days at $190. And he hasn't provided comps for it to me yet. He said I would need to tile the house, new kitchen, glass back splash etc. Which is pretty much what the one house at $190 has minus the kitchen backsplash. 70% rule rules this out right quick, but I'm being told (by him anyway) that this is how our market is in PHX. 70% would put me about $90k. Is it common to offer that far below ask for an REO? Or just a deal I should pass on and make note of for learning.