Potential first deal with inherited tenant issues

[Rita Oliva]

When buying a buy and hold, how much weight do you give to the current tenant situation? Here are the basics: Duplex for $30k. Each unit currently rented for $450. The house needs serious updating. I estimate about 5k in maintenance but about $10k to make it nicer and potentially raise rents/attract better tenants. Neighborhood is not the best but not a war zone. The issue: currently one unit is occupied with a mom, nonworking boyfriend, and 7 children. The other unit is a mom and 5 children. YIKES! That second unit (according to the tenant) hasn't had running water for about a month or more so the tenant has been staying with her boyfriend. She hasn't paid rent since May. Property is owned by a wholesale company who originally told me that both units were rented, current on rents, and that the tenant reported "a couple drains draining a little slow." Wholesaler lives out of town and says they weren't aware of the issues, but I'm wondering if they are trying to be deceptive. Is this a red flag or par for the course when you're trying to buy properties well below market value? I'm not worried about wear and tear on the place (it's already pretty bad), but don't want to be the one to have to evict 12 children if the tenants stop paying (or don't restart). What to do? Run?? Make the offer contingent on the non paying tenant being evicted (although it seems she can't really live there without water so not sure I blame her for nonpayment). Pay the tenants a little to vacate so I can fix the place up? I'm still interested in the place, but really don't want to take on these tenants.