Upside Down on a Vacant Lot(any suggestions?)

[Wade Mattingly]

Ok, I will try and keep this as short as possible.  I bought a house off my private lender to help him out.  The house was in worse condition than I thought so I couldn’t do anything with it.  I moved away and the house sat.  Ultimately the city tore thee house down and slapped a lien on it.  I owe $40k at 13% and a $7k demo lien the city isn’t calling due.  Houses in the area sell between $85k and much more rarely up to $130k.  I’ve slung some numbers around and it doesn’t appear I could build a house, sell, and break even.  I’ve also looked into modular but don’t think that is an option.  Again, I may be wrong on all that.  I had lot under contract for about $27k but my lender wouldn’t allow me to roll the debt.  Should I just maintain it and try and pay it down to the area that it would sell for?  Do You think there is a way to build out and break even?  This is an R-3 lot.  So I can do single family or multiple family.  Could also do boarding home which may allow for Airbnb options.  I have flipped some homes and have rentals in the area.  It is becoming an area with quite a bit of revitalization.  I have 5 years of new home construction management experience fwiw.