Should dry rot in the floor joists be a deal breaker?

[Scott Peters]

I found a property that could be rental ready with little more than $2000 not counting the following. There is a sunken spot in the living area and after looking under the house almost all the joists have some degree of rot. I think I could fix it but worry there’s more going on than I can see? First try at a deal btw. 1100sq ft property.