Need All of the above and some

[Motu Lemafa]

Hello! Seeking advice on how to continue with this lead and I'd like to turn it into a deal if possible. So here's the situation.

3 Bedrooms 

1 Bath 

~1250 Sq. ft

18x30 pole barn

5.7 acres 

Home built in 1910

Issues:

-There was an addition added to the backside of the home(~8x30ft) which serves as a laundry room/extra space?

-There's a small creepy, dark, murky, musty, basement/dungeon with steep steps leading to the main floor.

-Foundation possibly cracked all around the exterior--literally all around.

-Inside, the floors were leaning.

-dated

-Roof is 9 years old, gutters looked as old

-No AC/Central air, nothing.

This lady is moving out of the state and needs to sell her house. She used a FHA to buy the home back in Aug/2013 at $213k. I wasn't able to ask how much was left on her mortgage. I assume nearly three years of payments, she paid about $14-$16k in principal. So at the very most, she owes $198k. She mentioned to me, she would like to pocket $40k and was asking $250k. The property is rural--9 miles out of town. I couldn't pull legitimate comps for this area and prices were all over the place. $210-$800k... but that particular property foreclosed. Next highest would of been $650k, Anyways... I was thinking bulldozer'n the house and dungeon and build a new home(s) would be a better investment solution?(unsure and would appreciate input) 

She told us that there's a realtor eagerly wanting to list the home for $300k.  Being new to this, I thought that was an insane price and he's just wanting the business knowing eventually that price will drop month after month until it got sold. So my question to you is, can we turn this lead into a potential deal?  I'm not licensed so I can't just list it myself(not yet). The property is currently off-market.  I apologize if I've missed any important details.  Let me know!!

Thanks