Rehab vs Teardown

[James Johnson]

Hello everyone,

  Recently I have looked at a home on .50 acres, a nice size lot where I live, 3 Bdrm, 2 Bath, 1523 sqft. I used to live in the house back in 2003 as a renter before having to move out due to deteriorating conditions on the house. The owner got the house in a divorce settlement and didn't really want it but didn't want his wife to have it either. So because of that he did little to no upkeep at all. Fast forward to 2015, I travel by the house all the time and each time I see it falling further into despair. I sent the owner a letter and convinced him to at least hear my offer. My question is this, so much time has passed with little repair if any on the house, from the street it looks like a skid row home....if I'm able to convince the owner to let it go at what point do I draw the line between rehab vs total tear down and rebuild? I know for a fact that the foundation needs repair for sure. 

  I appreciate any and all help on this, I have yet to pull the trigger on any property since being a member on BP since May/June

Thank you in advance,

James