Is this home worth purchasing given concerning inspections?

[Joanna P.]

Hi All!

Newbie over here! I'm looking to house-hack in Chicago and have been looking at multi units for a while.. 

Finally found one in Humboldt park that's been around for a while with price decreases, made an offer, and am currently under contract!

However...Just got my inspection summary back and now I'm really worried if this might be a money dump.. Agent is saying the property would need around $60K of work, but I'm not so sure. It seems like someone has been fixing this property on their own and it's not great.
Somehow (i have no idea how) this property passed FHA appraisal.

Main concerning things about this 3 unit:

- It's actually legally zoned as 2 unit, but seller didn't disclose that

- Back deck is literally falling apart. Bad enough that I did not even attempt to walk up the staircase

- Carbon monoxide present in the basement (I want to create another unit in the basement..)

- Mold/moisture present in the basement / fungal growth 

- Exposed wires / wire defects all over the place

- Major foundation cracking in the basement

I don't know much about construction so I would be paying someone to fix all of this. Am I walking into a potential disaster? Or am I freaking out over the above needlessly? Listing price was $450K, so it's a hefty sum for me already.. I want to avoid a financial disaster.

Any help would be greatly appreciated! Posting major hazard notes from the inspection below.