How to make this deal work?

[Teresia M.]

Sent out yellow letters and got my first response.  I was contacted by the property owner who has a cancer and wants to sell before starting chemo.  The house is 3 bdrm/2.5 bath and is listed and I didn't know that until after talking with the owner.  I see from the tax records that she bought the property 3 years ago.  She gave me lock box number and I went in and looked at it.  This time when I got there the agents sign was in the yard.  It is in desperate need of landscaping and has a pool that has been partially filled in in the back yard. 

Inside the floors which appear to be laminate are warped. The wall in the kitchen where the stove was is damaged and the laundry room/ half bath has damaged walls.  All of the plumbing appears to be there, as there are some exposed copper pipes and fixtures still in place.  It's a nice older neighborhood and the property could easily rent for $700.00 per month.

Problem is the pool in the backyard and the listing price of $77,000 and the the seller paid $67,500 and there is  house a few doors down in better condition listed for 3/2.5 $55,000.  

I don't see a way to make this work. Anybody have any ideas?