When is a property not worth buying?

[Beth Anderson]

I have the opportunity to get a property under contract for $5,000 or less. Maybe even $2,000 before my wholesale fee. But it will be a complete gut job, and in the end, based on the neighborhood it is in, would only sell for about $40-50k max. I don't know if I should even try to get it under contract. Very few investors want to even touch the neighborhood. It might rent for $800, but the rehab costs would be so high compared to it's ARV.

So, do I bother? Thoughts?

If you're curious, it is in one of the run-down neighborhoods of Warren, Ohio near Youngstown, Ohio. (Think of it like Detroit)