Yep, those problems plus the no engine issue = walk away. At least that is my recommendation. There are many good boats out there to be had for a great price in this market. As inland lake sailors we don't have as many choices as the costal sailors, but I think you can find better.
Just food for thought when shopping for a boat: is your hobby going to be boat repairing or sailing? Even boats in great condition require a lot of care. I am finding this out quickly as a first time sailboat owner.