if it is a BRRRR you'd pay the seller off when you refinanced into long term debt, either conventional or DSCR.i don't know anything about the location, market, etc. but if it needs a 40K rehab, you need to push the purchase price even lower than 140K, or it will not work as a BRRRR. 

I’m located right outside the Akron area and work primarily with out of state investors (I’m a contractor/handyman) ask me anything about the area I’d love to help!

----------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

I do not individually allocate for the small items but the maintenance/cap ex worksheet contained the reasonable costly stuff like you mentioned then had an entry for all of the small items (bathroom lights in some of my locations do not last 10 years). 

Section 8 rentals are frequently located in extremely low barrier of entry markets, especially the single-family homes and small multi-family properties which I assume has also led to an influx of inventory.

its location dependant.. 

I'll include all details below.THE LOCATION: The hotel is conveniently located in the breathtaking Smoky Mountains, just minutes away from the Great Smoky Mountain NP entrance.

I am curious of where people find these low priced homes, if it is my location that is the problem, and if $30k-$40k homes are still possible to flip?

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Lots of factors in every location.