Surprisingly enough there was a podcast guest from Glenwood Springs. 

Company cultures can vary greatly, and you just might be surprised at what you learn while interviewing with others in the area.

I'm a little surprised to see you say its a 30% COC when your just taking the gross rent minus the payments...maybe I missed something so if I did, please forgive me. 

A surprise was the $6000 annual sewer and refuse bill, which seems high for the area.

While I'm certainly not a fan of FNMA, my experience with them over many deals is that they are careful not to do anything that would result in obvious negative press or a lawsuit, so my guess is that there is another side to this story that you're not telling.While FNMA's addendum generally gives them the right to back out of a deal for pretty much any reason, I've never seen that happen, and would be VERY surprised if they backed out just because they got a better offer, and I'd be VERY, VERY surprised if they did this and then tried keeping the earnest money.If the story is as clear cut as you say, why did the escrow/title company release the earnest money to FNMA.

You will be surprised at the results, usually. 

Maybe I'm not looking in the right places, but it's pretty surprising that things haven't picked up again.

This was unexpected obviously. 

Anyway, I will be really surprised if they accept.

Unless something unexpected happens, the current market numbers and overall economic health of Austin suggests that prices are unlikely to fall significantly from their current levels.