And multiple houses within two block are selling in the 600-700k+ range.

I was able to get money from three different parties ranging from 9-12%, no points, and a 12 month agreement to pay back the initial investment +interest.

Appraisal likely in the 800K+ range.

They like a certain price range of house. 

The Salt Lake Valley is trapped between the Wasatch and Oquirrh mountain ranges.

Just to be completely honest, 35816 is indeed a rough zip here;  but just like 35805, there are always going to be pockets of it that are better than expected;  however, I hope your realtor provided you a good target range on the rent, because even if the house is located in a good spot, a lot of potential tenants won't search 35816 for nicer rentals;  what target rent range did your realtor quote you? 

I have been looking at flipping a very low end property with a price of 6k with and ARV range from 40-60k.

My thought is if you can convince them to finance the deal,  increase the down payment a little and have your term be something a bit shorter, maybe 3-10 years (big range but up to you).

The units range from 350-600 sq feet and we are in our inspection period. 

Louis You will not be able to find returns in the 20-25% range as a passive investors.