Please remember that people, including investors, often make decisions or fail to make decisions based on fear and the unknown.  

For example here in San Antonio we have a strong government backing with all the different military bases and also lets not forget about the greatest championship team in the world, The San Antonio spurs lol.

Am I way off base or is this something that happens?

You only need one document to answer your 99k to know if it's upside down or not, but based on your responses, it's not worth telling.

ARV is based on comparables sales within the last 3 to 6 months.

First investment purchase, first cancelling of contract, so unclear on the legal standing etc.I entered contract on a rental, and post inspection am cancelling my purchase based on findings of inspection.The listing agent who is the team leader for my buyers agent is requesting a copy of the inspection.  

Unless, we have some other financial catastrophe (created by the US as the last one) or based on Geo-political upheavals that we help cause, but ultimately don't control.

your tax's are probably based on owner exemptions.. so WAY tax's on a 125k home in Texas or Houston will only be 700  a year more like 2,000 plus a year...

Thank you for the amazing feedback and guiding me, based on what you guys have told me I don't know if I want to invest there, still need to do my due diligence before I do anything else. 

He's based in D.C., from NC, and very sharp.