Should I walk away?

[Kerry M.]

1920 HUD former duplex 4/2 for $26K in a college town where 3/1 prices average in the 70's. Our contract date is 3rd week in April. The list of what needs repairs is long. Needs new plumbing on one side, including replacing truss under soaked and unsafe upstairs bath. Ceilings water damaged, water from damaged roof, old un-taken care of chimneys, bad flashing, unsealed nails. Radiator burst two years ago on upper level. Uninhabited since then (foreclosure.) Visible mold in at least two spots. Small (probably) asbestos found in crawl space. Lead paint probably and chipped. Electricity functional but numerous errors. Unsafe wood burning unit, could be fixed. Cracks in foundation and shifting in porch add-on foundation. Appliances work.
Beautiful structure of hardwood floors, layout, windows, and location. Safe neighborhood, within biking distance of college and most of all - free and experienced labor.
Appraisal says $40K. 2700 square feet. Plan on 10-20K material costs, including new heating system, hot water heater and gutter repairs. Paying with loan from IRA. I have four children in or about to enter college. The property would be student housing and rental. Thinking about titling in an LLC.
If not for the timeliness of college, I would not pick this as an investment. But if I strive for it to be safe #1, and to be in sellable condition within a year but absolutely within 5 years, I have a return of more than 100% of my money, considering the costs saved for room and board. I appreciate all replies.