Why a house is sitting...

[Rob Hoinsky]

I'm a part time Realtor and a  novice investor (my live in 3 family I bought as a foreclosure 203K last year). I feel like I know my area pretty well and always keep my eyes on flips, trying to visit them before and after and estimating their repair costs and estimating their profits. There is a foreclosure property sitting out there that I am thinking of purchasing as a live-in flip but there are a few concerns. 

First, the property is newer (1985).  It's a foreclosure. Not bad condition at all, no copper missing, 200 Amp service. Needs paint, kitchen, and a furnace. It is a 3 bedroom ranch on the main level with a bigger kitchen and LR than most 3 BR ranches in the area. A finished lower level with 9' ceiling and 8' drop ceilings, big open living area, "kitchen" area, storage area, full bath, and full bedroom. Under the lower level is a walk in basement with the furnace and oil tank. It would be perfect to make the lower level a master suite or an in law apartment. Now onto the concerns.

Concern 1 - It has been on the market for 4 months and the ask price lowered from $180k down to $90k over that period.  

Concern 2 - The lot is very steep. The house is built into the lot well, with the entrance being at street level. Stairs on the outside with appropriate landings. There is a 20x20 or so area of flat yard in the back and then a steeper part. Good enough to throw a ball for a dog. but not much else. 

Concern 3 - There are 2 ways to drive to the house. One way has got to be the steepest rd in the whole state.  The house itself is on a flat road and if you go out the other direction it is not an unusual hill for the area. 

Concern 4 - No garage. The walk in basement is good enough for lawn mower storage. 

Fixed up this should be a $200k+ house. But why has it been sitting so long? Is the steep lot and steep hill in one direction that much of a deterrent? No garage? Small usable back yard space a concern?