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Lonnie,
It sounds like the property is legally "mixed use". That means it is part residential and part commercial. You cannot just convert that to a single family residence. You need to go to the local municipality and get the use changed or you will have a heck of a time getting it appraised and financed. The legal use of a property is very important. Check the property records for the subject before you go further!!!!!!!!

send me the address. I probably can help you

Before you decide to go ahead, you should do more research into what the property will sell for once repaired. Active listings are not the best indicators of market value. SOLD comparables are what you want. Call an appraisal company near you. Ask to speak to an appraiser. Tell him what you are doing and ask him to run some sold comps for you. He has access to the multiple listing service which is the best info available in your area. Ask him what he would charge and take him the money. Probaby charge you around $30.

Gentlemen---I have been an appraiser for 21 years and a national review appraiser for the past 4. I am in full agreement that the appraisal business is a huge game. I’ve seen more incompetence and fraud than you would believe.
I also agree that comps can easily be manipulated to show erroneous values.
But if YOU call an appraiser, now he works for you. You tell him you want to know what the actual value of the property is and what the actual value of the property will be once the property is updated/repaired, he can determine that. The appraiser has no dog in this fight.
If I am working in an area that I am not familiar with and I need a real estate agent to find me comps, this is what I say. “Please run my everything that sold in the past 6 months within a mile radius of the subject. EVERYTHING”. Once they send me this printout, I choose the sales that are closest to my subject and most similar in age and size. I WANT TO SEE ALL OF THE SALES. You do too.
PS----There are honest and capable appraisers.

My information for this property indicates that the value is 350-375 if the home was in average condition. Since it needs 100K worth of work, this deal is not viable. I will private message you my phone number so I can explain how I got this, send you some info on this property, and tell you how to check this out further.

Listen to Minna--you can't even wholesale the property until you know what it is worth. Send me the address. I may be able to help you.

1.) The bank has had the home appraised and photographed to death. They know exactly what is wrong with that property and have factored that in to that list price.
2.) Next time, in your purchase offer, ask them to provide their foreclosure appraisal to you.
Now, an appraiser is not a home inspector and only catches the obvious needed repairs. Many appraisers do not adequately deduct the "market reaction" to the needed repairs on their sales comparison analysis but only deduct "actual cost". Therefore the list price could be inflated.
3.) As a new investor, you need to take a contractor to the home and have him give you an estimate for repairs.
4.) As far as your estimate of value upon repairs. How old are the sales you are using? The market has gone down in most places so they need to be very recent. If they sold before 1/07, they might not be good indicators of current market value.
IT'S GREAT THAT YOU HAVE THE COURAGE TO ACT AND DON'T LET US DISCOURAGE YOU-----Just do more research cause you need to be sure of the repair costs and current market value before you know if you have a good deal.

http://www.biggerpockets.com/bank-reo.html

Texas is different from other parts of the country because your average cost per home is way below the national average. You should not see the dramatic decrease in value that some markets are experiencing. Your motivated sellers could be people who have bad mortgage products like adjustables or "interest only" loans. They are most likely "sub prime" borrowers and have not been able to refinance to better products so they have to get out. Some of these will go to foreclosure. 2008 should be better by mid-year

1.) The bank will continue to lower the price at specific intervals until it sells. Don’t worry about their bottom line. There is no consistent reasoning for a deal they will accept.
2.) You should call the realtor for the property, ask to see the inside, and try to seek out information. Ask them if the list price is the price recommended by the agent or if it has been decided by the bank. Talk to them about the property and the market.
3.) If the bank can get it, they want market value. They determine market value from a foreclosure appraisal and a “broker’s price opinion” which is the real estate agent’s opinion of value.
4.) REO listings are not always but can be---good deals. If they have been on the market for awhile, the bank is more likely to come down.
5.) After you make every effort to determine the actual value of the property, you might want to make an offer. Banks like to sell to owner-occupants. Offer low.
6.) When you do, make sure you have a pre-qualification letter from a mortgage company or bank. The seller will probably require it to make an offer.
7.) They will negotiate most of the time.