I think your plan sounds great. But, I still think you should push to have the current owner handle some of these repairs. Waht about hiring a home inspector, your cost, and have them make a list of what needs done. At least, then, you will have a clear idea of what you are getting into. And, maybe, you can get some clarity on what to do next.
I mean, if you find out that the foundation is need of some major repair...it doesn't seem fair to have to handle that without at least asking for some help from crazy landlady.
Whatever you decide, just make sure your codependency isn't making the decisions.
"You know, it's times like these when I realize what a superhero I am." Tony Stark/Iron Man
“Focus on what you can do, then do it with all your heart.” Lois Wilson