NOTE:  The property was in demo court when I closed. 

So, we closed on the house on Monday and got started on demo this week...unfortunately we’ve also experienced our first delays in the project due to our demo “crew” (myself, my husband, and a friend), battling illness this week.

Not a plug because I haven't used it, but just saw a demo for Cozy.  

You can't demo the property (I.E. clean up ANYTHING) until you have certifications that there isn't asbestos.

For me, I'd take the deal as demo is already done and you move some walls and open it up making it real buyer friendly.

Find a small remediation company to do the demo and mold remediation only and they will do it for you at a fraction of what they would charge insurance companies.

I would demo that thing and replace a new one.

well, it's handy that they already did a partial demo for you. 

You would obviously have to factor in demo costs of existing structure, any environmental abatement etc, however that would be my first approach on establishing quick value.  

Now you have to buy it cash or private financing, tear it down, and then build new or sell the land for more than you paid for the house and the demo.