Should I buy my grandparents house and put multifamily units?

[Samuel Gates]

Hello, 

I have a question about a business decision. My family wants to sell my grandparents home in Los Angeles it will be split between all the kids (grandchildren if the parent is no longer living). They are liking on Zillow and seeing a 800k price and want that split 8 ways. 

About the property: No maintenance has been done on the property for over 20 years, the property is over 100 years old, 2 bed 1 bath, the chimney is falling off, the basement is flooded and the roof is sunken in. and it is near USC.

Goals: To build a multi-family apartment since I do not believe it is worth it to remodel the house. 

I am confused on what is the best strategy to take. I know that I want the house appraised to get the true value of the property as well as what needs to be repaired as well as what it would cost to build a multi-family apartment. Any insight or help would be much appreciated.