In my area I can get a 3/3 duplex for $140k in an A/B area that can bring in 8-900 per unit.  3+BR sfh go for around 100k in rentable condition.  50-60k in need of repairs.  

Even if the house is in relatively good condition, the whole situation does look like a mess. 

i'm new to BP but I dabble a bit in real estate and am involved with the deal so a couple of notes that may help your analysis.Smart move made by sellers is a 300 security deposit; helps keep the units in at least reasonable condition as that is a decent amount of money for some of these tenants.First off I'd classify this property as C+ maybe even B-.  

The house is in perfect condition and a great neighborhood with great schools.

When I saw the house I pulled over to the side and took a look around and it seems to be in a decent condition outside wise (roof looks fine just needs a pressure wash) maybe some new paint to spruce it up and some yard work, but other than that it looks decent..

I have a few leads who have tenants in the property and they do not want me going in to look over things and get a scope of the condition of the house.

You live rent free, or at least at a highly discounted rate. 

The building is in above average condition for the area, again my opinion.

I also like the fact that there is a section 8 renter whom I have met, keeps property in good condition and has no plans of moving soon.  

I also like the fact that there is a section 8 renter whom I have met, keeps property in good condition and has no plans of moving soon.