This home is sold at a discount, probably because the family just wants to quickly unload it. 

Bossalina Carpets, Castle Wholesalers, Falkenhan's hardware, national lumber, It just depends on what you want. 

i am assuming bank wants 80k to recover what's owed on it.i was thinking buying it, holding for 2-3 years, making 5% on my investment from a cash flow perspective, and then unloading it for 80-100k?

I go with laminate from Lumber Liquidators in the $1 - $1.25 sq/ft that already has the padding attached or I will look for a discontinued deal at one of the Big Boxes.

It's not always lumber, sheetrock, counter tops and fixtures.There are many ways to find distressed sellers and properties, your job is finding them, then solving the problem, cure the problem and reap the benefits of your efforts.

I work for a man by the hour for over twelve years I get $15 per hour use own toolsSo far this week I have saved him several thousand in materials,today it was at least2250/2300 on the lumber and plywood ,Monday it was about 1600/$1800 and we have another lined up for the weekend (I hear about or get offered deals I call him and see if he wants it if so...I pay for it and end up having to wait and have remind him several times to get paid back and he stays behind on purpose.

Based on my research, the time to unload real estate for buy-and-hold investors is when interest rate has moved up 2-3 years.

i mean, why would someone want to unload a money making property they advertise as having many new things added (i.e roof, furnace, converted to triplex) if its making positive cash?

And, you are already dealing with a seller who cant sell the house at his asking price, you are trying to get another $30k more than that.So, lets say the house really isn't worth $550k... its worth, say $520k ... you wait and wait for a buyer, you eventually have to pay on the mortgage ... and then you end up having to unload with a realtor.  

You are still putting up earnest money or "hand money" - if you are unable to unload the property, and you don't have any other out-clause in the contract, you are in danger of losing the earnest money.