It is really undesirable mostly for cosmetic work I am planning to fully renovate the property.  

Sounds like they are fighting back in a passive aggressive way making the house look undesirable for interested buyers.

Drive the neighborhood in a spiral to make sure you aren't in one of those undesirable pockets.Those ARVs sound a tad high for the area.

For some reason that lot just makes the property seem undesirable (to me) but interested to see the following responses because maybe I'm missing out on a potential grab that no one else wants to take.

From what I've seen of tax sales there are lots of undesirable deals.

This is very difficult in these areas simply because people wont pay a decent price for a nicer home in an undesirable area.

Reluctant, unplanned, undesirable or regrettable, once you complete foreclosure after forcing the sale and liquidation of the collateral for your note. 

And nothing but undesirable potential tenants have been showing interest.

I try to eventually fence my properties because it attracts more people that care about that kind of thing (and screens undesirable neighbors). 

My concern is that at this late stage in the cycle (my opinion), smaller, peripheral markets like yours tend to be the first to decline.