Strangely enough, I viewed a whole house like this around ten years ago. It was not quite as grim. It was caked in magnolia paint all over. They had painted over raised stains on the walls hoping to get away with it. The basement had a pool (a bit bigger) and the obligatory dumbbells' and kettlebells! There was also a kitchenette off the pool area . The oven was on and towels were being dried on a low setting inside.. except that the towels smelled badly unwashed and the musty, moldy stench of sweat (and the rest) had spread all around (it was a hot day in August). It was the right location and size and I even put in an offer. However, I slept on it and then called the agent up the next day to withdraw my offer. He was cracking up when I explained why (I am sure I was not the first person to provide this feedback!)
I am so glad I never bought it. I don't think you can erase the gay sauna vibe even with unlimited ventilation and removal of the acres of tiles.