The free market should dictate that this place sells for "normal price" minus all repairs and taxes/transaction fees on a flip and reasonable profit on investment. At least that's the waY it's supposed to work. Otherwise, it sits unsold.
There are exceptions to this formula, (notably white-hot markets where there are no cheap fixers around), but markets tend to take care of these things. The scenario you describe where it's priced $50k under normal market and needs $50k in rehab doesn't add up. Literally.
