How to know if this house is to high?

[Keaton Jones]

I believe this is my first post on bigger pockets so it feels like a good first step. But I’m needing some advice. A rundown house just came on the market for $140,000. This is a private seller and they are currently taking bids. I did a walk through and estimated a (rough) $35,000 dollar rehab cost putting the house at $175,000. On the same street a house with a very similar floor design sold for $250,000, I believe. The profit margin looks great, but I don’t believe the house is worth $140,000 and I think the housing market is making me hesitant on pursuing the deal. Is it uncommon as an investor to bid an unreasonably low amount? If you don’t qualify for a loan do to another mortgage, what are other buying options? Are there any guides to estimating rehab costs? Are there any speculations on how the housing market will look in 6 months? Sorry for all the questions but you don’t know what you don’t know. Thanks for any advice!

[Bruce Woodruff]

Quote from @Scott E.:

When I can, I like to order a home inspection, then meet my general contractor to go over all of the cosmetic remodel details, and the other items needing replacing/repair based on the inspection.

This is a good path to take, but be aware that the majority of Home Inspectors do not have the experience to pick out everything that a good builder can easily see and put a price on. Especially structural stuff. The ultimate is to find a Home Inspector who is also a General Contractor and Builder. They can find everything and give you a rough price on it as well (some of them will do this, I used to)