How do you profit off land? What are the best options?

[Tone Church]

My father has offered to give me his house and property. The house is a total disaster both aesthetically and structurally and will require a total tear down including the foundation. He also owes about $12,000 in back taxes. The land itself is worth about $50,000. 

What would be some ways to profit off of a situation like this. I would use the money to fund my parents' "retirement" since neither of them have a dime to their name and the house and one used 15 year old car are their only assets. 

- Sell the land

- Build a new house on the land and sell it for profit

If there's an option that provides ongoing payments to me for my parents or to them directly would love to hear about that.