Appraisal versus market value

David here today. This week i found out i have a stress fracture in my left foot and i have to wear a big "boot" which freezes my ankle and takes the pressure off my foot but its a major pain to wear and to drive or go up and down stairs. Anyways saturday i had to walk for 6.5 hours during a local scouting event called Scout Base in Tunica, MS
While it was great for my two boys it was tough on my bad foot and i am really feeling it today(sunday).
anyways, this week i passed on what could have been a major home run deal. In Memphis the average new home selling price is $175,000 which is very low on the national level. So when i went and looked at a home with 2 appraisals over $1.5 million you can imagine it was a very nice home. It is in a prestigious gated subdivision called Southwind which has a major TPC golf championship every year called the fedex stjude classic. The home has been completed for over 4 months and had 2 contracts to purchase fail at $1.45 million including one by a miami dolphins player who was arrested recently. Well the builder is strapped for money and his time is up on his construction loan and the bank wants it off their books. He owes 1.05 million and will sell it for what he owes plus all closing costs. Now for some reason homes are sitting in this subdivision. a big strike against it is that you cant see the golf course very well from the tiny amount that touches this lot and the yard is small and has no pool. while there are homes in this same neighborhood that have sold for over $2 million this one isnt moving. the biggest issue would be that if i bought it carrying costs would run $9-10,000 per month and quickly erode any profit. also upon selling any house retail you need to plan on spending 10% of the price on realtor and closing costs and prepaids for your buyer. In theory if we sold it for 1.4 million and took out 10% for closing costs and realtors that would leave 1.26 million against about $1.07 million purchase cost. that still leaves almost a $200k spread with $9-10k per month in carrying costs. Do you think this is a good deal or not? let me know what you think.