.$66K walked into what he thought was GOLD.It was a duplex that had wires exposed, was beside a bar that had 2 stabbing deaths in 2 years and was a duplex ...... with a HOLE cut in the drywall to accommodate the family of 8  into both sides of the unit.

Then you'd pay septic, and walk away with $100K.

I would go with your gut on this investment if the numbers do not work I would walk away. 

It's not possible to answer any of your questions without knowing what the entire agreement said, except there's likely no chance that the "tenants" would be owed any money for walking away.

He is negotiating the price, did the walk-through and repair estimates.  

C and I have an amazing relationship and I walked away from the meeting confident that we were on the same page and that things would be fixed before they got too bad.

With all that said,  if had to do again I would walk away from any property with a bad foundation.

Learn to walk and talk, the last batch I bought, I was driving down a street and noticed an older lady walking out of an empty house with a bucket and mop.

I just spent 7 hours Ubering and walking around Philly.  

It's a 2/2.5 with 956 SF and while I haven't been able to get in I have walked around the property I did look in all the windows.