@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. 

Quote from @Cari Sweet:  This sounds like a case for Fair Housing- Familial Status discrimination. 

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).

Either way it sounds like you have your information.

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

It sounds intriguing to me.

Sounds good!

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.

Whenever you hear something that sounds useful, WRITE IT DOWN.

@Theo Hicks does Joe's podcast and he sounds real pretty ;P