I told the listing agent this and she told me the seller wants to know what number I'd feel comfortable making an offer at.My question is, is there any generic formula I should be using to see what a ballpark good price would be to make this a fair investment before I start trying to come up with a realistic offer?

Is there a more complex formula that allows you to factor in expenses as well?

Know your comps, know the after repair value (ARV), know the cost of repairs, and maybe be familiar with the maximum allowable offer (MAO) formula which is 70% of ARV minus repairs.  

I have evaluated this property using the typical NOI and CAP analysis formula Jose Enage and it just doesn't make sense at this price "$1,450,000"...but the purpose of this msg was to get your expert opinions because i'm still learning.

If they are treated similarly, the discount is a gain that you have the option to pay tax on in the first year OR pay it over the life of the bond / note based on certain formulas.

When inflation kicks in once again the penalty paid for using ROI instead of NPV will increase.I am not sure how do you mean the influence of the inflation in the NPV calculation.I am using this formula:... where the i is a discount rate, t is the year and CFt Cash flow in that year.In my opinion the influence of inflation isn't included in the NPV formula, but let me know.

what formulas do you use when evaluating a deal for the first time?

You are familiar with the rehabbing/wholesaling formula right?

It does help sell the house faster because it opens up your buyer base to more investor's and possibly to ambitious homeowners, but I would argue that it doesn't necessarily give you a higher profit margin.If an investor goes by a 70% minus repairs formula then doing some of the repairs for the investor does NOT give you more profit unless you are getting the repairs done cheaper than the investor can.

I have a question....is there a formula to calculate an offering price for REOs?