Red tagged Property?!?!

[Scott Krause]

The property Im after had a small fire early this year and has a little bit of water damage with mold on thoughout alot of the drywalls. It also is on septic when it should be connected to the city system which is 800ft away from the hookup point. Would it be worth investing in such a property?

Its 3 beds 

2 baths 

1800 Square feet 

Im thinking the best way to deal with it would be to take it down to the frame and redo all the drywall and basically start almost fresh. 

The neighborhood is a good neighborhood full of $900,000 homes and its right nect to a high school. Their asking $400,000