.• Accumulation and draw-down is a finite proposition; the income is only for a fixed number of years and what happens if you outlive your investments?

It looks like the seller bought the house for $8500 in 2012 (and then realized he had taken on more than he could handle) so I'm guessing that there is a little more give on the price.Is this one that I should run away from as quickly as possible or is there enough skin in the game to make it a worthwhile proposition - perhaps as a flip?

Sounds like a losing proposition if they get 50% of rent and leave you with making all payments and repair expense on the remaining 50% of rent.

Generally appraisers won't and you're usually safer assuming rental income is a break-even proposition.

So, your proposition it seems is recover all, that is where I would start.  

My proposition would be to, yes, help find the deal if needed(although I would think a seasoned professional investor/rehabber could probably have greater access and knowledge of the specifics regarding the deal.

The people who do understand business are expensive (comparatively) it's your job to figure out what the value proposition is and go with your tolerance.

Thank you all for some very interesting posts, but maybe we're losing sight of the proposition. 

@Carter McCue Good question, because the proposition from the bank was a pleasant surprise.  

So for a long term buy and hold proposition it is better.