Wow...
I guess sometimes it pays to be poor. We bought our home brand new about nine years ago. I think our mortgage payment each month is a little under $700, plus another $100 for insurance each month (plus utilities, of course). It's a modest home, sure -- three bedrooms, two full bathrooms, garage, about half-square-acre front yard, two-square-acre backyard, fenced in with (at the time) new wooden fence, garage-sized shed for our mower and tools. We live in a suburban town in Georgia, but it's homey enough. (And the property has an estimated appreciation of about $50k since we first purchased it).
Can't imagine paying twice that for what you describe as "disgusting/in a bad area/something wrong with it."