With a 5% vacancy loss that's $68,536.8 (and I usually underwrite to 90% to be safe), 50% expenses (general rule of thumb) would give you $34,268.40.

  ( I am buying this for profit or loss and I am a principal in the transaction and a licensed agent in this state)  simple and never once had a seller balk at it.but any way each his own....

Most the time, the bank buys them back and puts them back on market within a few weeks and will sell them for a loss sometimes. 

- $11,349Total loss- - $3,549I had to replace the ac and the furnace they were17yrs old. $6500 if it wasn't for that i would have a profit of over $3000.

It's best to pair this with something that mitigates the financial loss to the charity like a significant whole life insurance policy. 

They are not the "Fire Sales" they use to be.If the bank is going to lose money and the loan has backing insurance (FHA/PMI etc) they just say no, why lose one cent when they are insured against loss.

Make sure you are sure you can handle the payments even if your flip does not return what you expect or results in a loss.

@Garrett CanterOK if you want to start a huge battle on Biggerpockets start a post on this subject, I have posted on this before, many people disagree with me but this is my real life story.So during the financial crash I'm just casually talking to a big time local personal injury attorney who goes to my church, I say well at least this down turn doesn't hurt you, he says actually it does businesses are hurting so bad they are dropping their insurance, and its almost never a feasible to take legal action if the they don't have insurance.  

I am at a complete loss! 

So the plan was then to just repair what we could to make it as valuable as we could get it and sell and essentially take that $40,000 loss, and just go from there trying to invest in rental properties.