Trash or treasure?... locked up since 1985 this could be the ugliest thing i've ever seen! what do you think?

[Nicholas Miller]

It was like walking though a time capsule only with mold and piles of what might be trash or could be treasure.  This home has not been lived in since 1985 and the owner wants $5k  to walk away.  I have good reason to believe the owner will take less but I am not sure what price I can justify for the risk.

3 Bed 1 Bath SFH 1,536 sq ft. ARV is difficult to calculate in this area but it will make a strong rental at $630 per month +/- 12%. Assessed value (is wrong) at $45,000 and taxes are $1,110 per year (I can get them lowered but it would take 12 to 18 months from the time of closing to go into effect)

Title is clean however there is a code violation for $350 against the property. 

The home will need foundation work

new plumbing

a new furnace

new water heater

new insulation 

massive cosmetics

I am worried about the water line coming into the house and the swer line going out of the house since it has been vacant for nearly 30 years and what surprises might be buried.  On a positive note the house went to tax sale a few years ago and received a bid of $24,000 however the bidder redeemed the taxes to keep the overage...  Great news for the owner....  However I am sure they would have preferred the cash rather than the $3k of taxes paid by someone else.

Here is a video of my walk-through

What are your thoughts?