diff --git a/.idea/misc.xml b/.idea/misc.xml
index aa61ddb..9e3e273 100644
--- a/.idea/misc.xml
+++ b/.idea/misc.xml
@@ -60,7 +60,7 @@
     <ConfirmationsSetting value="0" id="Add" />
     <ConfirmationsSetting value="0" id="Remove" />
   </component>
-  <component name="ProjectRootManager" version="2" languageLevel="JDK_1_7" default="true" assert-keyword="true" jdk-15="true" project-jdk-name="1.8" project-jdk-type="JavaSDK">
+  <component name="ProjectRootManager" version="2" languageLevel="JDK_1_8" default="true" assert-keyword="true" jdk-15="true" project-jdk-name="1.8" project-jdk-type="JavaSDK">
     <output url="file://$PROJECT_DIR$/build/classes" />
   </component>
   <component name="ProjectType">
diff --git a/app/src/main/java/com/smarthomies/realtimetalk/network/NetworkingConstants.java b/app/src/main/java/com/smarthomies/realtimetalk/network/NetworkingConstants.java
index fbb64e6..444b181 100644
--- a/app/src/main/java/com/smarthomies/realtimetalk/network/NetworkingConstants.java
+++ b/app/src/main/java/com/smarthomies/realtimetalk/network/NetworkingConstants.java
@@ -12,6 +12,7 @@ public class NetworkingConstants {
     public static final String API_LOGOUT_ENDPOINT = "odjava";
     public static final String API_REGISTRATION_ENDPOINT = "dodaj";
     public static final String API_CONTACTS_ENDPOINT = "contacts";
+    public static final String API_CONTACTS_DELETE_ENDPOINT = "contacts/{id}";
     public static final String API_PROFILE_ENDPOINT = "profile";
     public static final String API_PASSWORD_UPDATE_ENDPOINT = API_PROFILE_ENDPOINT + "/password";
     public static final String API_SEARCH_ENDPOINT = "search";
diff --git a/app/src/main/java/com/smarthomies/realtimetalk/network/apis/ContactsAPI.java b/app/src/main/java/com/smarthomies/realtimetalk/network/apis/ContactsAPI.java
index f4a13b7..c286ea8 100644
--- a/app/src/main/java/com/smarthomies/realtimetalk/network/apis/ContactsAPI.java
+++ b/app/src/main/java/com/smarthomies/realtimetalk/network/apis/ContactsAPI.java
@@ -9,6 +9,8 @@ import retrofit2.http.Body;
 import retrofit2.http.DELETE;
 import retrofit2.http.GET;
 import retrofit2.http.POST;
+import retrofit2.http.Path;
+import retrofit2.http.Url;
 import rx.Observable;
 
 /**
@@ -26,7 +28,7 @@ public interface ContactsAPI {
     @POST(NetworkingConstants.API_CONTACTS_ENDPOINT)
     Observable<Object> saveContact(@Body ContactRequest contactRequest);
 
-    @DELETE(NetworkingConstants.API_CONTACTS_ENDPOINT)
-    Observable<Object> deleteContact(@Body ContactRequest contactRequest);
+    @DELETE(NetworkingConstants.API_CONTACTS_DELETE_ENDPOINT)
+    Observable<Object> deleteContact(@Path("id") String id);
 
 }
diff --git a/app/src/main/java/com/smarthomies/realtimetalk/services/ContactsAPIService.java b/app/src/main/java/com/smarthomies/realtimetalk/services/ContactsAPIService.java
index 94e2b77..1384878 100644
--- a/app/src/main/java/com/smarthomies/realtimetalk/services/ContactsAPIService.java
+++ b/app/src/main/java/com/smarthomies/realtimetalk/services/ContactsAPIService.java
@@ -44,7 +44,7 @@ public class ContactsAPIService {
     }
 
     public Observable<Object> deleteContact(ContactRequest request) {
-        return RestClient.getInstance().getContactsAPI().deleteContact(request)
+        return RestClient.getInstance().getContactsAPI().deleteContact(request.getUsername())
                 .doOnError(handleApiErrors);
     }
 
diff --git a/app/src/main/java/com/smarthomies/realtimetalk/viewmodels/MainViewModel.java b/app/src/main/java/com/smarthomies/realtimetalk/viewmodels/MainViewModel.java
index 4e4efed..89ac04c 100644
--- a/app/src/main/java/com/smarthomies/realtimetalk/viewmodels/MainViewModel.java
+++ b/app/src/main/java/com/smarthomies/realtimetalk/viewmodels/MainViewModel.java
@@ -8,6 +8,7 @@ import android.util.Pair;
 import android.view.View;
 
 import com.smarthomies.realtimetalk.RTTActivity;
+import com.smarthomies.realtimetalk.database.UserDAO;
 import com.smarthomies.realtimetalk.managers.AccountManager;
 import com.smarthomies.realtimetalk.managers.AuthenticationManager;
 import com.smarthomies.realtimetalk.managers.ContactsManager;
@@ -23,6 +24,7 @@ import com.smarthomies.realtimetalk.views.activities.SearchActivity;
 
 import java.util.List;
 
+import io.realm.Realm;
 import rx.Observable;
 import rx.Subscriber;
 import rx.Subscription;
@@ -140,6 +142,15 @@ public class MainViewModel extends BaseObservable {
     }
 
     public void onLogoutDone() {
+        Realm realm = null;
+        try {
+            realm = Realm.getDefaultInstance();
+            new UserDAO().deleteAll(realm);
+        } finally {
+            if(realm != null) {
+                realm.close();
+            }
+        }
         NavigationSubject.getInstance().onNext(new Pair<Class<? extends RTTActivity>, Bundle>(LoginActivity.class, null));
     }
 
diff --git a/app/src/main/java/com/smarthomies/realtimetalk/viewmodels/UserViewModel.java b/app/src/main/java/com/smarthomies/realtimetalk/viewmodels/UserViewModel.java
index 1c4882d..1713db4 100644
--- a/app/src/main/java/com/smarthomies/realtimetalk/viewmodels/UserViewModel.java
+++ b/app/src/main/java/com/smarthomies/realtimetalk/viewmodels/UserViewModel.java
@@ -11,6 +11,7 @@ import android.view.View;
 import android.widget.ImageView;
 
 import com.smarthomies.realtimetalk.R;
+import com.smarthomies.realtimetalk.database.UserDAO;
 import com.smarthomies.realtimetalk.managers.ContactsManager;
 import com.smarthomies.realtimetalk.models.db.User;
 import com.smarthomies.realtimetalk.views.activities.CallActivity;
@@ -18,6 +19,8 @@ import com.squareup.picasso.Picasso;
 
 import java.util.concurrent.TimeUnit;
 
+import io.realm.Realm;
+import rx.Observable;
 import rx.Subscriber;
 import rx.Subscription;
 import rx.android.schedulers.AndroidSchedulers;
@@ -37,7 +40,7 @@ public class UserViewModel extends BaseObservable {
     }
 
     public UserViewModel(User model) {
-        this.model = model;
+        setModel(model);
     }
 
     public void setModel(User model) {
@@ -45,6 +48,21 @@ public class UserViewModel extends BaseObservable {
         if (model == null) {
             this.model = new User();
         }
+
+        Realm realm = null;
+        try {
+            realm = Realm.getDefaultInstance();
+            if (new UserDAO().findUserById(realm, this.model.getId()) != null) {
+                state.set(true);
+            } else {
+                state.set(false);
+            }
+        } finally {
+            if(realm != null) {
+                realm.close();
+            }
+        }
+
         notifyChange();
     }
 
@@ -71,8 +89,11 @@ public class UserViewModel extends BaseObservable {
         return new View.OnClickListener() {
             @Override
             public void onClick(View v) {
-                final Subscription subscription = new ContactsManager()
-                        .saveContact(model)
+                Observable<Object> objectObservable = state.get()
+                        ? new ContactsManager().deleteContact(model)
+                        : new ContactsManager().saveContact(model);
+
+                final Subscription subscription = objectObservable
                         .delaySubscription(3000, TimeUnit.MILLISECONDS)
                         .subscribeOn(Schedulers.io())
                         .observeOn(AndroidSchedulers.mainThread())
@@ -93,7 +114,8 @@ public class UserViewModel extends BaseObservable {
                         });
                 Log.d(TAG, "onClick: ");
                 state.set(!state.get());
-                Snackbar.make(v, model.getFirstName() + " " + model.getLastName() + " added to conctacts.", Snackbar.LENGTH_LONG)
+                String action = state.get() ? "added" : "removed";
+                Snackbar.make(v, model.getFirstName() + " " + model.getLastName() + " " + action + " to contacts.", Snackbar.LENGTH_LONG)
                         .setDuration(3000)
                         .setAction("Undo", new View.OnClickListener() {
                             @Override