I actually like that house a lot! The baths, etc, would have to be redone, but that lot has a TON of privacy yet is in the heart of everything.
One drawback may be that the extra land is all hillside and may be expensive to keep trimmed to avoid fire danger…cuz I can guarantee the neighbors will be keeping a keen eye on it.
Not sure if the land is marked open space, but it may be off-limits to development due to the slope.