Buy or not help needed - Slumlorded 8-plex opportunity

[Josh Helfer]

BP,

I'm as green as green can be but incredibly passionate about learning as much and as fast as I can. While going over potential properties my wife and I came across an 8-plex. Building is 100 years old. Stats to follow, but quick back story. Current owner last appraised at bout 300k. Went on market two years ago, never sold (it's in bad shape from reinvestment/repair neglect). Went back up on the market about 6 months ago, so its sitting at about 190 days on current listing for 180k. We entered escrow at 160k. Upon inspection report inspector rates it at about 2-3 out of 10. Needs new gutters as current box gutters are a mess (est 14k), wood rot expected from that. Mold in basement, exterior wooden staircase needs replaced (1-2k), retaining wall needs replaced(2-3K). AC and one of three furnaces needs replaced (est 8k). That's just what we know, and that's my concern is the unknown with this kind of neglect. The 30k we wanted to invest into it for upgrades to increase rent would go into just making it livable. Recently seller put in new roof, and a 400amp panel in basement, BUT its not wired for metering and would have to be rewired. Owner pays all utilities, which is about 15k a year. Ok, numbers time.

Last appraisal 300k. Current market price: 180k. Escrow at 160k. Ballparked repairs expected ~30k. It's 8 units, with 7 tenants currently living it, 1 about to move out. Last year grossed 57k, but due to mismanagement (all utilities by owner) NOI was about 23k. Due to the inspection, we notified the realtor we'd be using the exiting clause in the contract because repairs are over 1k, and we really don't expect the seller to drop the price 30k to cover these costs. Units rent between 750 and 400, different sizes but most are 700.

So my question, where did I make a mistake if at all, and should I ask the realtor to renegotiate if this place is worth buying? And if I bought at 160k and it gets reappraised (assuming Code passes!) at ~300k, could/should I use that spread in equity to finance repairs and or reinvest in another property?

Thank you BP!

Josh