How would you proceed? Purchasing 2 Unit as an Investment - ISSUE

[Jon Dorsey]

I've come across a 2 unit town home, upper/lower units that was marketed at $195k. ARV of comps in the area would be around $200-215k. I put in a bid based off of Cash-flow and ROI metrics and was accepted at $170k. Strong rental demand in the area, its safe, and would provide good cash flow for years to come. I expected to put in about $5-8k to update fixtures and some appliances.

After the Home Inspection I've got three big concerns going forward: 

1) Roof hasn't been touched since late 90s early 2000s. Its a rolled on rubber flat roof. There's leaking and effervescence in upper unit and will only get worse. Honestly surprised it's lasted this long. (~$5k)

2) It has front basement windows/sunroom. The frames are rotted, the lintels look like they've popped the stones/masonry and letting water through, and there's some sagging of the front porch (above these windows) causing a few cracks in the cement and more leaking into basement room below. Its a 1938 home, so probably some lead paint issues. (~$???)

3) It has oil heat boiler that needs to be replaced. This one is easier as there's natural gas lines and I can just convert it over but still pricey ($5-7k)

The seller doesn't have the funds to make the repairs so I'm trying to find a way to make this deal happen

Without getting bids, I'm estimating about $15-20k for rehabbing these items (FEEL FREE TO TELL ME I'M WAY OUT TO LUNCH)....this is on top of the $5-8k I budgeted to put into the interior.

I'm not a flipper and was looking at this as a buy and hold cash flowing property.

Looking where to go with this one:

A) Reduce offer by $15-20k to $155k

- Cons: I'm going to have to find a loan as I need my capital for other purchases in the hopper

B) Reduce to $160k and get $5k in closing help

- Cons: I'm still going to be out of pocket but b/n closing help and reduced downpayment would be able to get most of the work done and just put the rest on a credit card and use the cash flow to pay it down over the next 12 months.

C) Walk

D) Other options???

I appreciate any feedback on how you would proceed and why.