Liz's first bid

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Well I found a property in Menifee Ca.  It has several advantages. It is very close to the contractor I am working with and in a nice neighborhood.  The home has been vacant for 7 years and now it is a short sale.  The asking price is 220,00 It's a 2bd/2bath with 1255 sq. ft.  I offered 187,000 and yes I know that is more than the 70% rule but I feel I continuely get out bid because I am bidding too low  and then don't get another chance.  although the residence is missing an air conditioner and furnace, the property is in very good shape.  The Landscaping needs a total revamp.  As does exterior paint and facia.  

    The loan I have gotten approval on bothers me a bit.  It is for 200,000 with 25% down for 3 0r 5 years with 10.99-11.25 interest rate.  Yikes.  So I come in with 50,000, the mortgage would be 1450 and I pay 4-6 points.  Now if I don't want a prepayment penalty then I can buy that by paying 1 more point.  I hope I am presenting this correctly.  Somehow this does not seem like a great deal.  but what if it's all I can get?


I'd be interested to know how this worked out? I'm am looking in Menifee for an investor, for that same type of property. 

How did your contractor work out? I don't have any go to person in that area. I'd love to find someone solid and reliable. Thanks.