If the location is great and you see the value in the property then proceed.
According to consumer reports for a bathroom/master bath remodel - A rule of thumb is that the total projectâ€”including materials and installationâ€”should cost no more than 5 to 10 percent of your homeâ€™s value. http://www.consumerreports.org/cro/2012/03/bathroom-remodeli
If you have to ask then you should not be buying it without a buyers agent. If you were familar with the market you would not have to ask.
I suggest two things,
1) get a buyers agent
2) go out and look at as many homes in your price range so that you will know what a fair price is in the market place.
Leave the updates and repair items to your home inspector who will guide you.