@Mike Terry sounds like a pretty good argument to go after the property, I think your question is more along how to value it, and account for the deferred maintenance. 

Low or no down, seller financing and low or no interest with a balloon payment later is the holy grail (location, building condition, market also matter but it sounds like you have all that).

While some of the answers were different from each other, I completely agree with all of them.

We decided that we would put our current home up for rent when the new house was complete.

I realize I don't have the actual NOI, but that price sounds super high for the gross income you're stating in your narrative.

It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees.

There are two items that you need to completely solve this problem for your rehabs: properly built Design Boards and a Finish Schedule.

The conditions on the ground going into the project may not be the same as when you complete!

Just looking at Zillow I’m having a hard time making the numbers work between prop taxes, insurance, management on 20% Down vs cash currently earning 5% (albeit that 5% going away soon with rate cuts)  To be completely honest, there's not much right now that will give you decent cashflow without getting into a full rehab.

The only thing that sounds out of the ordinary here is the water bill