The deal seems pretty slim IMO. 

My research is pretty amateurish, but after reading the first few chapters of JScott's book, I put together a spreadsheet with a recently sold distressed property and four comps (super easy in this case, 3 were model matches within a couple blocks), and it seemed clear to me that the investor had only a slim margin between his purchase price and ARV (bought for 200k, 250 ARV).

It took me a good 6 months to find the deal I'm working on now and my margins are pretty slim.

There is a very slim chance that I could get to Colorado Springs for my last 12 months, which would be great, but we probably won't stay there much past those 12 months if it does happen.

If market value is 99k and you are buying for 93k and the place needs upgrades it seems like a slim deal.

If they are an experienced flipper who says $30-40K, that means a whole lot more than someone who is just guessing.If they are just pulling numbers out of thin air, and your margin is slim to begin with, it is very easy to go over budget (in fact, bet on going over budget on your first flip) and erase all your profits.But therein lies the catch.

That means purchase price should be closer to $38750 with 9k in repairs accounted for already plus 1k buffer for contingency.Exit Strategy #5 - You may be able to some sort of cooperative Lease Option where you sign a lease with option then assign your interests to a handyman Tenant Buyer for an assignment fee to make a quick $2k - 3k and your out of the deal.There's no way I would stay in the middle of a deal like this with such a small profit up front, small cashflow and virtually no back end payout.Also, principal paydown wouldn't even come into play unless your holding the property as a long term rental.Again, I'm no expert, still learning the ropes myself, but the margins seem slim to me.Just my honest opinion.Jeff V

Other areas that sell homes for 80k offer better options and yes pickings are slim here  but there are deals out there.

Flips are certainly selling quickly, but the mighty slim pickings and price point shuts out a lot of local investors.  

If they would have released all of the default homes on the market there would be slim to no new home communities.In today's current market we are pretty balanced.