A quick check of the the West Penn Multi-List shows this property located at 570 Panke Street as under agreement of sale and it has been since 12/30/10. The property does need substantial if not total rehabilitation which could be quite costly. And yes there are other homes that are livable for under $40,000 however you should consider the positives and negatives of having four owners to a property.
There are livable properties for $40000 or less in Pittsburgh. You can set up your own search using the web reference link. I can also help out as your dedicated Buyer's Agent, when we can discuss your needs and financial details in confidence.
Call or email me so we can talk about your needs. There is no obligation to talk, and no cost to you until you purchase a home.