looking for Advice about a SFR

[Yisroel N Moebus]

Hey everyone,
i'm just getting started in REI and i'm about to obtain my first SFR. My parents sing family home is located in NY and still has a large mortgage on it. My Mom doesn't want the house anymore and told me that i can take it and work out a way to pay off the mortgage.
My question is this: The house is worth 500k and there is a 350k mortgage on it. The house needs work to say the least. 
I spoke to Agents in the area and I was told that people that come to buy in the area usually like to fix it themselves. 
They also said that Houses don't rent out here because people coming to the area are buying. (Property taxes out here are pretty high too) 
What is the best Strategy for me? 
Thanks in advance!