Police have established Strike Force Nambir to investigate after a man in his 30s was found dead inside a Warilla home with reported stab wounds on Monday morning.
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A 62-year-old man living at a house on Bradman Avenue called police to his home about 8.50am after finding the man's body on the lounge room floor.
Lake Illawarra Inspector Dan Richardson said the older man said he had "woken up to find his mate was deceased".
"He ran from outside his house, and asked neighbours to call police," Inspector Richardson said.
Police arrived to find the body of a man with "apparent stab wounds".
He is believed to have been in his early 30s, but has not been formally been identified.
The older man was taken to Lake Illawarra Police Station to assist police with their inquiries and was released on Monday afternoon.
The incident was being treated as suspicious, under normal police procedure. No arrests had been made by Monday afternoon.
For several hours on Monday, the house and neighbouring properties became part of a crime scene, with police tape cordoning off access as forensic crews investigated.
Three investigators entered the property about 10.30am, with half a dozen marked cars and a number of unmarked detective vehicles present in the street.
The man's body remained in the home for several hours, while detectives walked the street to interview neighbours.