It sounds like a lot of work, but someone who has experience may be willing to partner if the profit is there.The first thing you need to do is get a better estimate on comps.

In your offer to the bank I would include a contractors estimate of repairs.This lets the bank know that while your offer is low, if they want a good price they need to fix something before its sold.Several of my short sales where done this way, the first counter was high and when I asked the bank if they looked at the enclosed estimate of repairs they came back and approved the sale.

In addition, it has been my experience that those with troubled credit may have a larger chance at over-paying for a property than a prime buyer.I'll leave this post alone now because I've said my peace.

If it doesn't cashflow chances are good no one else will buy it for what they are asking.Income property values are based on the revenue they produce.

If you're assigning the contract, there's a chance, especially in today's market, that you may have to cancel the contract, at which time, the earnest money will be returned to you.

The appraisal is being done but I estimate the house to be worth around 320K.Is it possible to get a mortgage for 280K(270K for the house, 10K for the closing costs) if the house is worth over 300K?

Is there a general rule of thumb for estimating closing costs for commercial properties, ie % of purchase price?

Many investors simply choose to take a chance that the lender will never find out or they just dont realize there is such a clause.

BTW, chances are the VP is in charge of all lending, because it is a small bank.

You will have to get a unit cost list going for all types of material, and then you can just plug in your estimated time to complete the job.