Lose Earnest $ Or Find A Way

REO under contract at 69K, comps show MV at $102K. We have 100% financing on mortgage at 8.25%. Closing in 1 week. However, we must finance: Closing costs: $3,600 Repairs: $7,500 taxes, hoa: 3k Insurance: $700 In the same neighborhood in the past 2 weeks similar houses are selling for $85k. Comps we used reflected $102K. Rent in the area goes from $900 to $1050. It will be tight and appears we will go negative quickly if we have to hold very long. Should we lose our $1,000 earnest money and get out of this deal or do you have suggestions on how to make this work so that it becomes a profitable deal.