@Thomas S.

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@Kevin S. is correct--the VA will go with 100% of sales price (assuming the property appraises).   

@Tom S.

That being said, if you narrow your search to a specific type of house in a particular area...you can get some general purchase price numbers.For example, I am looking in a specific area that has tons of 1960's houses and the home values are all right around 220-240. 75% of $240k is $180,000, so if I can buy a property and be at or under $180,000 after acquisition, holding, rehab, financing costs, etc then I can pull all of my money out. 

@Christa S Rickard  I have some multi families, and in general the 50% rule is pretty solid. 

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Then include a clause as to what happens if they aren't and additional damage results.I'm curious if this house had a second bathroom and if they continued to use the tub after they found the crack(s).

@Arron Lloyd I have built up a good sized portfolio of sub2’s, at least a couple dozen of them have been preforeclosures.

That is where I made my first million(s).