1936 Denver down town property - renovate or reconstruct

[Sunitha Alli]

Hello,

I am considering to buy a 1936 home in Denver downtown for $450,000.  This home is mostly surrounded with roof top condominiums each selling for $550k.  

The lot size is 4500 sqft. and finished space in home1500 sqft. .  It is in bad condition needs a lot of work.  I do not exactly know what all is wrong in this property but my wild guess is $100,000 to fix it.  I expect of get rent of $3000 after renovation.

Alternate approach is to construct 4 condos instead of spending 100,000 on renovation.  Each condo with 2 floors, about 1500 sqft and roof top.  

My questions are:

1.  What precautions should I take if buy this property for renovation purpose?  Can I ask for inspection before making an offer?

1.  Should I plan to construct 4 condos instead of spending $100,000 on renovation?

2.  What is the typical cost for constructing 4 condos each about 1500 sqft with 2 floors?  I read that it is about $100 per sqft is it true in Denver?

3.  What information do I need to find out prior to buying if I can build condos in this area by demolishing old building?

Thank you

Sunitha