Lots of factors here.
First, whatever you buy has to be livable in its present condition, and remain livable as you do upgrades and repairs. So rule out houses in such bad shape that isn't possible. They're not bargains unless one of you is a contractor with a crew needing to fill its idle time.
Second, location is really, really important. A sweet little house you fixed up wonderfully, in a so-so neighborhood, may not sell for enough to have been worth it. You might do far better in a crappy little house in a good neighborhood. That includes good schools, walkability, closeness to shopping, etc. even if those things don't matter much to you.
Third, what are your skills and what are you willing to learn? Most young people start with stripping off wallpaper, tearing out wall to wall carpets, doing interior painting, maybe a little light tile work and exterior painting, plus landscaping. Online tutorials and workshops at Home Depot can help.
Fourth, how much sweat? Are you willing to rip out bathrooms and deal with the debris and resulting mess? Tear out kitchen cabinets and do all food prep somewhere else while a contractor puts in new? Put in new yourselves, risking mistakes? And do you have *time* for this? (And money?)
Other concerns are whether you have a place you could stay for free for short periods while the house isn't livable, like when you have no working kitchen or bath. A cheap motel's cost adds up fast, but Mom and Dad might be glad to see you. Are you both willing to spend your free time working on the house rather than doing what you do now, for a long time? Do you own the tools you need, or will you need to buy or borrow them?
Our adult kids are making the same decision you are, and this is what we've told them.