high competion deal my gut says good oportunity good location

[Elias Twitchell]

I found a zillow listing this past weekend 18-20 Phelps st kittery maine. Its up for 70k but some roof damage and foundation cracks make me think i have to approach it from tear down and new build pricing. The property doesn't own water front but is just woods behind house to the ocean and their are some nice public sidewalks with ocean views. Its kind of between Boston and Portland Maine so better then podunk areas of Maine.

I tried to use the whole sale calculator and put in conservative numbers but it told me i should buy it for -136k so I think I did something wrong. Shows me I still have a lot to learn. I wonder if anyone could help me check the numbers and explain how you would do it for this location? I asked my realtor and there are already over asking price offers on it. But i still need to learn the numbers and maybe I can come with a better presentation the town owns it I believe its a run down duplex that they took possession of through taxes or something similar.

It has a low income housing restriction but that doesn't scare me should it?

I would plan to hire a new build crew to build a new foundation and maybe build a duplex but two story more bedrooms and bathrooms. I think it was a 2/1 1/1.