I can answer wearing multiple hats on this one. I have purchased homes in this exact condition. Typically, I look primarily at the ARV. Sometimes land valuation is too much, other times it is not enough. You have to simply sit there and grind out your numbers on the rehab and the ARV and see if it makes sense.
Additionally, I am a firefighter, and I have identified some properties that look like an absolute nightmare to most people. I have found this as an opportunity because many people are uninterested in what looks like more of an issue than what is really at hand. Sometimes a property can leave a lot of smoke and water damage when in fact there is not a ton of structural work needed.
You may have a diamond in the rough that people are overlooking.