It’s not that bad that it needs to be torn down. The structure is fine. It just needs some expensive renovations to replace the inside doors (outside ones are fine), do some professional cleaning of the scale buildup in the pipes, fixup the electric stuff, insulate the roof, replace some of the flooring, replace some of the bad appliances, and some cleanup of the old junk.

Connecting to municipal water is not a problem, it can be done, it will only need digging a trench to the road.