I have picked up my share of losers over the years. I try to keep the $$ I pay for it low enough that I have a chance of surviving the transaction without losing a ton. I typically will part out a bike with a sorry frame. 90% of the time, I can get a stuck seat post out (10% of the time, not).
I drove 3 1/2 hours one way to pick up this gem. Oh yeah, and to get it, I had to buy five bikes including a Mongoose, a Rollfast and a couple of other crappers. I was able to resurrect this Fuji, the rest of the bikes were parted out. I too had committed to buy, so I stuck with the deal.
+1 If you are going to chase after bike deals, time to start reinvesting flip profits into tools. I don't remember a single deal I have picked up that did not require work. Bikes in project condition tend to last longer on C/L and enjoy a healthy discount.
I would not say you got burned, rather, consider it tuition in bike flip school.

I love this creative cable routing. How to negate the advantage of an aerolever...
After a lot of time with OA, tossing several parts and pulling replacements out of the bin, the bike came around.
I made a "profit", if you put my pay at about ten cents an hour.... Note that the chrome on the fork crown came around, thanks to OA.