To Convert SFH into Duplex

[Eric Kluth]

I have this lead on a piece of property in Camas, WA where the owner is looking to sell. It's a very run down small old house on .50 acres. House is 940 sq ft built in 1925. The lot is zoned for multi-family. The neighborhood is nice with newer apartment complexes, and duplex/townhomes around, which this lot sits right next to. It was last sold for $90k in 2014. The land was valued at $61k. The duplexes in the area are selling for around $300k +- 15; $125-$131 a sq ft.

The options I envision would be to (1) convert this to a duplex, (2) demolish it, and build a duplex. I also see that I could possibly sub-divide the portion of unused land to a developer.

I am a new investor, and my goal is to hold this long-term, and live in one of the units for a while (1-2 years).

I would need to finance this, as I don't have the cash. I would have 30k to invest. 

So my question: is it a good idea to do either of the options above? That is, does this sound like an opportunity? I'm worried I wouldn't have enough cash to do either. 

Thanks