Keith,Northern Nevada has been booming lately due to low cost of living (which has been steadily increasing), taxes and businesses coming to town.

Tried to sell but get low ball offers from 60-120K. 

Depending on your involvement, you may be self employed and want to be sure you are recording this properly. 

as low as 5% down on 2-4 unit, lower mortgage insurance premium and no upfront insurance payment at closing, and it's a conventional loan so stronger offer and less red tape than the FHA. 

It is much easier to get a loan for a property you are going to live in, especially with low money down.

If you refi out of FHA, it allows you to use the low down payment option again for another purchase.If there is a college student market there, you can generally make more than normal leases by renting rooms individually.

I would say your cost estimate is way off, I haven't heard of anyone doing a project like that for $100k (granted I don't know the details) because construction on small projects is running $325 (at the EXTREME low end) and up - some other commenters have mentioned this as well. 

Low risk and potential to make a sizeable return without using credit or very much cash makes this a very attractive way to invest in real estate .

I believe that’s the best way to get in the RE game because of the low down payment.

I'm obviously trying to stay low cost here as it's a flip and use a more lean contractor.