Should I Buy or Walk?

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Hello BP Members,

I am considering purchasing a foreclosed Fanne Mae (HomePath) home with a lot of upsides and down sides. I am in desperate need for some advice because I am not very experienced with the evaluating a deal. Comps say it is worth $300k and I have a purchase price currently at $282k. (property tax is $3,950).

The GOOD:

The property has two separate dwellings with their own utilities. The main home can be rented out for $1,650 (3bd, 2bath) a month and the second home for $1,250 a month (3bd, 1bath). I am going to live in the main home but would like to consider them as both rentals in case I would like to move.

The BAD:

The main home needs some roof repairs ($3k) and the smaller home needs a new roof entirely ($7k). I got a great roofer and he is giving me a deal. The main home had multiple additions the home inspection recommend additional investigating. Had a structural engineer design a mitigation for a structural flaw and a contractor bid for ($5k). I estimate with these repairs and all the little things needed will cost $25k (very conservative). Interest rate is high (5.1%, $1,850 note GFE) because it is HomePath home and conventional would not pass with current condition. I estimate the cash on cash return to be about 14%.

Should I Buy or Walk? With $55k I guess I could put 20% on two single families in stead but nothing worth buying around here.