Good Duplex Opportunity..maybe not so good?

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Hello Everybody!

So I found a duplex (on market for 82) days listed for $439,000 (1706 SQFT living space, 3920sqft lot, 2BR,1Bath each unit) Lot situated with an express way exit in the back yard...but on a side st. I was able to get it under contract for $400,000.  ($234/sqft)

Looked like a good barebone reno project, with rents in the area going anywhere from 1450-1700.  Duplex in the area have sold/are listed for around $550+ albeit they are about 500-600 sqft larger. Comps in the area are going for about $245-$280/sqft depending on condition.

Now heres the problem, we just did a home inspection and found out there is only 60AMP service w/ knob and tube wiring..siding has dry rotted and the windows need replacing.
A minor foundation settlement crack.  5 Year old roof.  New water heaters..Plumbing is OK, brass water piping needs replacement.

So what I originally thought would make a great deal, has turned somewhat OK to maybe bad.  The sellers offered $5k cash concession..lol

What are your thoughts?  Should I just walk away and wait for a better opportunity? It was easy getting lead into this duplex since it was listed for below $500K, but when I break it down...the sq/ft doesn't quite add up.

I do have about 200K in cash for reno, but not sure if it'll even be worth it.