newbie looking for help analyzing numbers

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There's a home near me for sale off market. Asking price is $85k. Repairs needed are $40k. Comps suggest the house would sell for $165k conservatively in a very hot neighborhood of the city. Some of the homes nearby are going for $200k. It's a 2 bed 1 bath single family house.

At first glance using the 70% rule, the purchase price should be around $75k. However, the home has had a few offers of at least asking price of $85k. What are those investors seeing that I am not? What metrics are they probably looking at? Would this be a purchase you would consider at 85K?

Well the 70% rule is thrown around on BP far too broadly, you need to evaluate what is proper for each individual market. Folks could also be seeing a lower repair cost because they do this all the time and have more accurate estimates, or better GC contacts. Also if they aren't flipping but using the BRRRR method they may have different metrics.