Looking at projected ROI numbers can be confusing because of the baked in speculation (appreciation and equity) and additional numbers you have to consider. 

But thats just my speculation, take that with a grain of salt.

1) you don't look bad because you are selling a fix and flip that needs to be fixed and flipped.2) replacing wires and pipes isn't nearly as much trouble as you think it is, and if you have an experienced flipper, they will be able to do this with no issues.How to handle it:take a deep breath, and move forward, keep everyone in the loop of what has happened (the facts, not the speculation) and let them decide if they want the property. if I was your buyer I'd already be putting in to account how a property could look with a tenant if they move out.

You can do better with a bank CD and not have to worry about a large special assessment or a tenant wrecking the place.So, this is a pure speculative play.

The key in my opinion in an appreciation market (that doesn't hit 2%) is to focus on value add strategies ... forced appreciation is not speculative if done properly, and you don't need to be a flipper to take advantage of it, it can work for buy-and-hold too.

Just pure speculation. 

I of course would find something that covers expenses but it doesn't appear possible based on my recent search (in Brooklyn or anywhere else in NYC, aside from maybe Canarsie which I don't see changing quickly) My gut feeling is that it still probably is worth it for the long run, but maybe I'm just speculating on appreciation of this part of the neighborhood (southern Bushwick has not had bars/restaurants until less than a year ago and it seems like they're coming at a fast pace), although I would like to hear some opinions on this (would be madness in other markets but maybe in NYC, one cannot expect immediate cash flow?)

Find a disinterested 3rd party to check out work periodically esp big ticket items.Mexicantown, Islandview, and Core Cities are decent appreciation plays, but very speculative.

The speculative froth is fairly common during the later stages of a bull market. 

In Dallas there is a lot of speculation whether their new development project to make the Trinity River kind of like the Riverwalk in San Antonio will increase local market values.