Buying property with water in basement

[Chanel Sanders]

Found an amazing home in Chagrin falls, OH for $39,000 around 1200 sqft. The house is a complete shell total rehab. Has subfloor, electrical, and plumbing only. Also has standing water in basement that comes up the stairs almost to the first floor. Also house has a septic tank. I have been looking for a perfect dream home to fix up but I'm wondering if this will be too much of a project? Should my husband and I walk away from it?