Flipping a Condemned Property

[Sal Trapani]

Asking all builders, investors and seasoned Real Estate professionals:

What do you do on a deal that had about 100k in spread, but becomes borderline "condemned" by the Buildings Dept.? Spend money on permits and repairs (reducing profit/not guaranteeing a resale), tear down the home and sell for land value OR just try to get your money back (no additional costs, selling at your previous purchase price)?

I've tried to reach out to local builders to get a feel on their interest on the property/land, without much luck.

What would you do?