It is the selling price (less. closing costs and fees) minus your purchase price along with capital improvements you made (new roof, bathroom, etc).You cap gain/profit will be less than the $28k difference.

It is a 2 bedroom one bathroom and I am asking 110k.

The place has been recently flipped so new bathrooms, paint, floors. 

If the property really is discounted $60,000 what am I missing?

new HVAC, electric panel, recessed lights, added bathroom, tiled bathrooms, opened up kitchen, new cabinets and appliances, granite counter tops, refinished floors.

I still don't understand why people are taught to use 250 - 350 for capex per door, that might be okay on a 3-4 year scale but if you're holding 20+ years that's severely discounting real capex.

Purchase price: $80,000 Cash invested: $40,000 This was a 1 bedroom 1 bathroom fix and flip using the house hack strategy.

Adding 1 bathroom and 1 bedroom.

In 2014 I completed renovated the basement suite from flooring to ceiling, kitchen, furnace, bathroom, windows etc.

The house has 3 bedroom and 2 bathrooms on the main floor, a separate illegal basement suite with 2 bedrooms 1 bathroom in the basement AND an oversize double garage with a 1 bedroom carriage suite in the backyard.