Is renovating even realistic? I am looking at this

No.

Thanks for the curt reply, Steve.

Kinda what I figured. Too bad. In Denmark, where I am from, you just do this yourself, almost no questions asked, no permission needed. Guess I need to find a house that isn't in need of more than paint and a kitchen.

Which is a shame, I was looking forward to doing some renovations, working with my hands. But that's not really possible in Italy, I guess. Too many rules.

Sorry, but I took a look at the area and at 1200m above sea level and a "main" road it's probably not safe (or possible) to cycle along. I think the house just said it all as it's likely not to be there, but in the river below. Can't imagine getting materials up to it without a great deal of issues and working on it, well! That's all apart from the cost and dealing with the comune.

I think it all depends on what are the conditions of the house you want to buy. Each house might be subjected to different rules. This specific house clearly has structural problems which are evident from the cross shaped cracks in the wall of the kitchen and the dry walls which look quite loose. Even though working on your own house is not necessarily forbidden, you would definitely need a geometra and an authorized plan to stabilize it. Earthquakes are no joke in Italy. From the way it looks you would also need to re-do the electric system and heating which need to be certified for safety. Once you get the house stable and safe you can do the finishing by yourself. However, in my experience of old houses (I own a farmhouse in Umbria) buying something in such bad conditions always turns out to be lots more expensive that buying something where you can live already and just need to upgrade it to your taste. 

Its a 'no' from me too.  Landslip, erosion, access,  cement from the 1970's, all combine to make a bad investment!  Plus you cannot do the work yourself if it is in any way structural - you must have 'professionals'  And i doubt all the house is legal.  

Allright, allright, allright. I knew it. It’s a crap house, but the view was just so good. 

so how about this one? I just don’t get why it’s so cheap? Must be a poor roof or a heavily trafficked road?

https://www.idealista.it/en/immobile/14733385/

Have a look at google street view here if you have not already done so (you should). I would be concerned again at how high it is, the thin supports for the balcony and the house attached. But a road back and front!