On the surface yes, the numbers may appear to be tight, first my ARV is conservative. 

It appears they need to update to the most recent census data.

If you have a business plan and want a certain return and the property appears on the surface I would continue to the next phase of putting a contract on it and doing your due dilligence. 

I would think that even if you spent 100k on the rehab, you're still making a killing...There don't appear to be a lot of recent sales in the area and it is one of those places where you've got $130k houses mixed in with $1M+ houses.

Obviously, we are just slightly smaller then Ken, and our process appears night and day different to JJ's.

I think what everyone is politely trying to say is "this appears to be a big waste of your time!"

I calculated all of my costs, and it appears that the place should cash flow to the tune of $800-900 per month after paying the mortgage, taxes, insurance and bills.

I just checked it out it appears my score on that site is pretty low.

My advertised rental that he wants is $475.00 per month and so it would appear that he should easily be able to afford my rental, except the only proof of disability income which he was able to provide me from the Social Security Administration, dated: Nov 28, 2014 indicates only $946.00 to be paid on the 3rd day of each month.

@Matthew Schroeder thanks for the calculations on the cap rate it would appear that if Blaine wanted to leverage the equity in the units by maybe adding a few upgrades and flipping the units to an investor or someone who is more inclined to stay in the town then this may be more attractive.