Even at the current below market rates the deal will still cash flows $130/mo per unit, after factoring in 10% vacancy and 10% maintenance/capex. 

@Travis Henry  Is the water billed back to the tenant or do you factor it into the price of the rent? 

You're making a little passive income, all your money is now in this building... you can't wait forever for the appreciation.Would you look for a value add property first, buy it, do some additions, raise rents, place tenants and sell it?

Don't forget to factor in loan closing costs.Another note: if you fix it as a "flip" the property is going to be worth a higher ARV.

@Eric CreagerBelow are some of the services an accountant or attorney can provide to you.AccountantBookkeepingTax StrategiesRecommendations for entityTax compliance(Tax return)EtcAttorneySet up EntityDraft lease agreementDraft Partnership/LLC AgreementEvictionEtcWhat services you need will factor into the cost. 

The main factor likely has to do with the lack of access provided by the owner/tenants.

You need to look at a bunch of factors - ARV, GRM, DSCR, Cap rate, EM, CoC ROI and so on.

She still lives there to this day and my gut is telling me that this is one of those situations where that is her "forever home" and not to do it.

In my area I wouldn't buy a 1947 house with a basement water problem.I understand there may be other factors that may make this a good deal though for you.Obviously there are things you could do, such as ensure gutters are unclogged and draining away, or dig up all around the house and sand blast the outer walls and coat them and install gravel all along the exterior walls, or put in an exterior sump, or have trenches cut all around the basement perimeter inside the house to collect water and then pump it out, or you could even toss away some $ by painting the basement walls and floors with special thick paint, but why make any of those steps your problem?

It's a combination of several factors.