Help with changing approach or should I cut and run?

[William S.]

So I've been eyeing this deal and finally made an offer. The building inspection uncovered that the new house foundation is just sitting on top of the old one without any stabilizing measures.The crawlspace was largely inaccessible to the inspectors, but what they saw was mold/moisture issues. A lot of the crawl space was inaccessible. The roof will need to be replaced within 5 years. A variety of damage to walls and floors which I dont mind. But my estimates and offer had not included these bigger issues. They were only asking 50k. My offer was 43k. My thinking now is to drop the offer to 10 or 15k and see what happens. 

Is there a strategy to turn this into a good investment or should I walk away? The ARV is 90K or so.

My credit is good and am hoping to take advantage of low interest mortgage. I'm not gonna be able to pull a mortagage on this place now but could low ball and pay cash. Then I'd need a construction loan to do the major projects...is it too far off base to go down this path or can someone turn me onto a different approach. I wanted to use a BRRRR approach to building rental income but I'm thinking this is not the property to start with.

Any help would be greatly apperciated.