Cincinnati 5 family analysis

[Jimmy H.]

This property is located in a relatively nice Cinci burb. It is REO bank owned foreclosure, no short sale. Listed with a realtor at $157,000. Currently vacant (i've yet to figure out why banks vacate all the tenants in MH properties, I know they don't want to be landlords but they make it harder on themselves b/c MH investors invest based on returns.) but it is rent ready, in good shape, with all appliances etc. 4 one bd's and 1 two bd (5 family unit). Two bdr should rent for $700, and the One bdr's should rent for $500.

2% rule would make this worth 135,000, even though it is a bit out of the 2% rules' "range of relativity", so to speak. I am thinking about offering 115,00 and coming up to maybe 125,000 max.

County auditor has property value listed at 225,900 (55,900 land and 170,000 improvements) and taxes are a hefty $6,356.43.
Bank purchased at foreclosure sale 4/14/10 for $112,000. Probably lost a lot of money on foreclosure and trying to recoup some through this listing. Wouldn;'t expect them to accept much less then $120,000 b/c after comissions and legal they'll be losing money (based on repossessing at $112,000). I'd say they want 135,000 at least (guess). The previous transfer was made 11/05 for $251,000 and prior to that the alst sale was in 1992 at $85,800.

thoughts?