Powderpost beetle treatment costs a bit more than other pest treatments, it requires some expensive chemicals. 

Can you just gut the unit and then spray everything with a chemical to kill the mold?

A little bit about myself; I'm a recent college graduate who moved out this way from the east coast last year, I maintain a "9 to 5" as an engineer in the Chemical Manufacturing industry, and I am looking at REI as a means to further diversify my portfolio.

Either the house is a tear down, there was some sort of toxic chemical spill, or something else is terribly wrong... right?

Chemicals and water loss does cost some, but not as significant.  

Unless the owner was selling the meth I don't think that would happen.I have also heard you might need to gut the house if meth chemicals are in the walls.  

Try Shawn Huss at Chemical Bank.  

Just the chemicals used, etc. do impact the property.3.)

He even told me that he has purposefully spilled chemicals on trees so that he could get the county to approve having them removed.

If it has a central air unit, it must be legally disconnected and the Freon or chemical recovered.Taxes must be paid, and lot rent if located in a park.Then you are ready to move the "free" home.