Just a thought,
Financing it may be a huge issue.
First get a lender. Get prequalified.
The discuss the condition of the house with him to see if it will meet appraisal.
Then if you really want to buy, pay a realtor a small fee to provide you with accurate values for the neighborhood.
Then if you really really want to buy it, have a board certified real estate attorney to write the offer for you.
Offer what you all together have come up with as a reasonable offer.
See if it works.
Why do you think the value is so much less now than when you originally saw it and moved in? Most of the issues you describe are not new and were there when you fell in love with it. I'm guessing you thought the $109,000 then was fair. Why the big discount now?
Perhaps the better alternative is to find a home in better condition. Good luck.
Absestos shingles and what else? Your concern list is growing I think. Sounds like you have some serious questions. You might listen to your questions. You are the drivers seat! You might also have a experienced REALTOR represent you so that you have the best advise and YOUR respresentation and best interests in a high priority.l
Not sure of your address but if you give me the address I will run a check for you of value. If you are going to finance the home it will have to meet the appraisal value and no mortgage company will finance more than the home appraises for. Additionally the mortgage company can also demand repairs if the appraiser so notes. Rent to own is a strange agreement as no one knows what the market value will be at the time of the sale. Many of these agreements end questionably. This is a curious time and definitely a great time to buy.