My $10k example was admittedly unrealistic.However, by way of further background, @Dustin Heiner wrote an excellent article on this topic on his website masterpassiveincome.com titled "What to Do When A Buyer Backs Out From An Assignment Of Contract".In it he suggests a scenario where the assignee decides not to proceed, perhaps after discovering a big ticket repair item that would cost significantly more than the portion of the assignment fee held in escrow. 

recessed/sheetrock is a low cost, no brainer improvement that sells.

$200k purchase$200k rehab$750k ARV

Louis offers affordability, cash flow potential, and emerging market opportunities but also presents management challenges, unfamiliar markets, travel costs, local regulations, and crime rates.

I'll sound like a broken record, but STRs definitely hold a lot of hidden costs and regulations.

I’m approved for 500k but I’m looking for a place where housemates will cover most of the mortgage From what I’ve seen, a rehab in the edge of east Liberty is 475k .

deal flow  getting deals good enough leave enough forced equity to get your cash back at refi pretty simple concept.2. cracker jack rehab crews that can get these turn overs done in time and on budget.3.

With the flip I am very handy, but I would hate to get into something, not knowing how much It’s all going to cost.

There are many more of this type of property in Durham as older homes with basements are still price accessible.To make it a "legal" or permitted duplex, the process is definitely cost and permit intensive, and in most cases may require you to use a GC or similarly licensed tradesman for parts of the project.

Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbookLocate and attend 3 different local REIA club meetings great place to meet people gather resources and info.