Help me make sense out of this "deal"!

[Arturo Fuentes]

Hi friends! 

Newbie investor here. I came across this property in the MLS this last weekend. It is a single family house in one of Denver's up and coming neighborhoods. The house itself is one of those scary ones that has a lot of problems. From moss growing between the shingles, to water (and possibly mold) in the basement, this one has it all. The property is being described as "investor special", probably because no bank will give anyone a loan for this property. Per the listing agent's comments "this house is uninhabitable".

Here are the numbers:

2 bedrooms, 1 bath. Unfinished basement. House is 880sf in a 4500sf lot. The lot is zoned for 2 units. Asking price is $270K, Comps are between $309-330K. I'm estimating it's going to take at least $70K to bring up to rent ready.

As you can see, those numbers don't work in any way, which makes me curious if anyone else sees a way to make this one work. 

One option I see is to make an offer at a price that makes tu numbers work, say around $190K, which I really don't see them accepting. Another option I see is that it is being listed for land value (think tear the house down and build 2 new units there). The problem I see is that the price is still too high. To give you context, ready to build lots in Curtis park (one of the best neighborhoods in Denver, in my opinion) were recently sold for $225K. 

No matter how I look at it, this property doesn't work with the asking price being anywhere close to where it is right now. Am I missing something? Do you have any other ideas on how this property could work?

Let me know your thoughts!