Backing out after inspection

[Dalyn Hazell]

Hi all, 

Just wondering how often someone should/would back out of a deal after a scary inspection. Here's what happened:

I found a $75k, 100 year old in C+ neighborhood on the MLS. After running the numbers, it looked real good. So, I offered 15% below asking, or $65k.

They immediately accepted. I was happy, yet skeptical.

I had an inspection, and it came back pretty bad. 

Here were all the issues:

1) Sizeable roof leak into the living room and other areas of house

2) Large foundation crack 

3) Extensive termite damage on wooden foundation post

4) Outdated electrical, including aluminum wiring

5) WET crawlspace. Actually just a pretty wet house.

6) Some other minor issues (broken windows, urine smells, etc.)

I know so much more about doing a correct property walk through now.

Long story short, I backed out. Was I wrong though? Should I have at least offered less, or had the seller fix some things? After talking with my realtor, family, etc. they all insisted I back out. I'm still on the hunt for my first deal.

What would you do? Back out or pursue it?