Hi Laura ,That will depend on you overall financial picture and investment goals, and the market conditions in the area.

After closing we had our contact go visit the house ytoo see what condition it was in.

I found a triplex for $109,000, with lots of potential, however due to it's condition financing is not available.

I want to buy small rental houses in good condition to rent.

Also, at that price, HVAC should be in new condition and so should the roof.  

Overall the house is in very good condition in a nice neighborhood.After speaking with him, he owes $30k on the loan and wants to sell the place to be able to pay that property off as well as his primary residence, which I believe was around the same amount owed.  

What if instead you bump purchase to $105K on the condition the seller put $5K into an escrow used to pay your septic guy (attorney holds it and releases to the septic guy).

Its good to know your market so you can make intelligent offers based on market conditions.

IS the $120k - $130k for similar homes in the same condition as this one....or in great shape and retail sales?  

I know that is arguementive depending on the area and condition of the home and buyer's pay for convenience for a property that is set up compared to one that needs TLC.