It has small stuff like water leakage at sink fixture handles, water leakage in sink drain pipe, water stain beneath sink. 

There is a mortgage on the home but it is not under water.

Delinquent Under Water Home Mortgages Declines http://activerain.trulia.com/blogsview/4687562/delinquent-under-water-home-mortgages-declines#.VYGmiEWf9O0.twitter #REALESTATE

According to analysis by Ben Leybovich you should calculate about $150 - $170 per unit per month for capital expenditures over time (boilers, water heaters, flooring, roofing, siding, etc, etc) for buy & hold properties.If your $600 is missing some of those items you might be in trouble.Hopefully, you've used the BP analysis tools (free!)

The numbers are: HOUSTON ISD Not Certified 1.196700  HARRIS COUNTY Not Certified 0.417310  HARRIS CO FLOOD CNTRL Not Certified 0.027360  PORT OF HOUSTON AUTHY Not Certified 0.015310 HARRIS CO HOSP DIST Not Certified 0.170000 HARRIS CO EDUC DEPT Not Certified 0.005999 HOU COMMUNITY COLLEGE Not Certified 0.106890 CITY OF HOUSTON Not Certified 0.631080

By his own admission, one of his three small commercial properties is still under water.

At least its a floor... half the houses I go to look at are dirt floors...Does the basement have water issues?

It sounds decent for your first house hack.Should probably make sure it's not in a flood zone.  

Biggest expenses I'm looking at are some fogged windows and the HVAC & water heater are 20 years old but still work fine.....for now.Purchase price $134,000.  

Make sure the land you buy has water and sewer connected already also (another $6900 here) in Pensacola fl.