When looking for a house you not only look at the house but you need to also look at the neighborhood. In fact, in most cases I would put more weight on the neighborhood. When buyers are ready to start looking, they tend to think in terms of neighborhoods. I have buyers who already know what area they want to live in. I would look into what's going on with those houses and ask your realtor if this is typical of this neighborhood. This house you like may be the best in the neighborhood, if that's the case I would keep looking. Another house will come along. IF THIS IS THE HOUSE YOU WANT, then go for it but just as the realtor in Tucson said you will need to ask yourself, "can I deal with looking at those eyesores ?", not to mention what happens if I have to re-sell this house unexpectantly. If you as a buyer right now have a problem with these house, then chances are so will other buyers.
Good luck and I hope my answer helped.