Forcing a short sale

[Stephen R.]

I'm new to BP and REI

Scenario: I'm looking at a property that I intend on buying and renting.  It's a 2BR, 2BA, 1145 sqft condo. It is currently in foreclosure, (or pre-foreclosure and subject to probate.) I am familiar with the complex, the now deceased owner and her family, although I haven't approached them with any offer to buy. As I understand it, the pre-foreclosure period is the best time to buy, especially since I have a rapport with the family.

Although I don't have the exact numbers yet, the fair market value looks like its teetering on what is likely the amount owed. Based on the BP calculators I should be able to generate positive cash flow even at full market value. However, depending on the actual amount owed and the repairs/updating costs, the offer I would make may come in at, or just below, the amount owed. So my question is: What would be the advantage/disadvantages of forcing a short sale over $5 or $10K?