I know the property.
Commercial: probably too far out to ever be really valuable as commercial. It's possible, but I wouldn't hold my breath. It is a decent corner though. The problem is that by the time you pay for the property now, fix it up to live in it, it will be worth more as a house than the underlying land by itself (as it would be valued for commercial use).
Subdividing: if you could also get the piece behind it, it would be better. You will have to run infrastructure (streets to city specs, sewer, water, lighting, curbs, guttering, etc) if you subdivide it into multiple lots. You don't have enough land to make it profitable. And the lots you will have created will never sell for $47k. You might get $15k-$20k if everything goes perfectly.
Another option: Split the lot in 1/2. Keep the house and the driveway on the northern 1/2, then you've got a decent sized lot you could sell on the southern 1/2. Since that lot fronts the street, you won't have to run any infrastructure. And the city may allow you to split it "in house" without having to take it through the full subdivision planning rigamarole since it will only be 1 extra lot. Then you could sell the lot, or try to get that 1 lot rezoned into office (or commercial, but I doubt it will fly).
House: man, that thing is so full of ugly tile. You are going to have to rip all that junk out of there and redo it. And it's a big house, so it won't be cheap. I can tell you that your repair estimate is way way low. Any time you are dealing with a house over 3000 sq ft, there is not much you can do for $15k.
