We bought a little Cape Cod style house, built in 1948, that needed a lot of updating. Got it really cheap. Over the past 5 years, we have made a lot of changes & updates, and it's all been well worth it. It is now the way WE want it, and it's really satisfying doing the work yourself when you can. I would definitely get the home inspection, it can save you a ton of $$$ in the long run.
BTW - is it a good deal? One thing you don't want to do is pay a high price for a home that you know you'll have to immediately sink more money into.
The upstairs still had the 1960's wallpaper up, the first floor was last remodeled in the early 1980's. It. Was. Hideous. BUT - I saw past the peeling linoleum, the fake white brick backsplash, the worn out blood red carpet, the panelling, the plastic folding doors, etc. I KNEW that could all be changed, relatively easily and cheaply. I also focused on the high points - hardwood floors throughout, new furnace, 3/4 brick exterior, 2 car garage, full basement which is partially finished, ceramic tile bath. And room to EXPAND! Which we did.
The point of my boring post is that home ownership is a challenge, it can be stressful at times, but it is very rewarding. One of the best things I did. Just remember that looks can be changed to suit your taste. Concentrate on structure, charm & character.