So, they get some cash and title to the land after demo. 

How much should we allocate to demo such a structure and prepare it for development so that it's attractive to developers?

I will have to provide and buy all the finishing (cabinets, countertops, tile, flooring, etc), but they demo and install everything.For the garage conversion, including the walk-in pantry and 2 bedrooms, the mini-split system, taking out the garage door and framing it and adding siding to look like the rest of the house, and add 1 window in each bedroom, the quote was $40k.I would love to get your opinions.  

CO landlords can still evict for all of the common grounds for eviction: nonpayment of rent, violation of lease terms, damage to property, disturbing the peace, health and safety violations, illegal activities etc. and can also still evict if they plan to conduct repairs or renovations, property demo or conversion, move in to the unit themselves or have a family member move in, withdraw the property from the rental market, or if the tenant refuses to sign a new lease with reasonable terms. 

I would love to work with you on some of these, my team and I are doing around 5 contracts a week; from Demo/New Build to Rentals to Commercial Mix Use & Induatrial.please let me know if you wouldn't be opposed to connecting!

As a city dweller, I'm not familiar with the renter demo of that area and am assuming that most of the renter class are people who commute to Manhattan.

Back in Washington where we fix & flipped properties I did anything from general contracting from demo to finishing touches, managed project budgets & timelines to stay within our projections and SOW, raised capital for down payment on hard money loans, interest on loans and rehabs, worked with my hands (best at flooring, trim, caulk, cabinets, fences, punch list items) and was the real estate agent for acquiring and selling our flips.

I am a bit more hopeful because really do not want to demo it. 

I am now approaching 115+ days since assignment on my first 3 deals and because I am in NYS, my attorney tells me that I cannot even speak to buyer’s or seller’s attorneys due to “breach of contract”.I lost my first deal in fact because we were hindering on 130 days since assignment (should have been long closed) and the city decided to demo before we closed and were able to takeover in court.

Best is to get a qualified contractor to go through the process at the least until passes the demo and reframing stage of the structure