i have done 2 ..30k properties   in the past  4 years  here in Houston,Tx  area  , needed alot of work , foundation /roof / electric /plumbing ... big ticket items  , wasn't bad , becaue the neighborhood comps were in the 110k range    , after all said and done , listed and sold for 100k  , spent  on  rehab  35k / comm /closing 10k   came out with 25k profit ... 

If it were me, I would be prepared to push the foundation much harder + other high ticket repairs than the price drop... but shoot for both... the worst they say is no. 

He's told you what he wants to get out of it (although he may take less) and the home inspection report should give you a good idea of the condition of the property (although it also depends on the quality of the home inspector).If they already had one home inspection, the tenants likely know the property is for sale and you might be able to secure a brief appointment to view and inspect some of the items on the inspection report with a contractor or handyman to get more accurate bids.The big issues you'll want to look for is plumbing, electrical, HVAC and the roof as those are mostly the big ticket items. 

Big ticket items like insurance is one area where you can get big savings.I just got my escrow estimate for one of my rentals and the insurance went up by $200! 

AirBnB  founders and  early stage investors just lost their big ticket cash out tickets ,,Perhaps when it does go IPO in  a few years now its at a more realistic valuation .

Landlords are in a position of power (we make the rules, choose tenants and can evict) and are in the same category as a boss or a police officer who can pull someone over and give a ticket. 

Best advice from me would be to start setting yourself up for success and don’t wait for anyone to give you the “golden ticket” or present you with an offer to good to refuse.

He just played more lottery tickets than most people.

Be mindful of deferred maintenance or any other big ticket items that may be coming due that might not have shown on the seller's P&L.

Press the agent on the big ticket repair and see if any estimates for the repair have been done by the receiver.