Not only does it make the house stink, but there's a lot of extra labor involved (i.e. washing/scrubbing walls) whenever it's time to repaint. 

After thinking about it more, the scary part was, if some head scratching decisions were made on the rehab that were visible to everyone, what questionable decisions were made behind the walls that you couldn't see?

Another post-tenant property had multiple holes in the walls and the entire tub/shower insert was falling out.  

This wall is 3" out of square and build with 4x4 pressure treated posts, so its going to be fun to try to make a new door look square. the previous door was hung on the 2x4 next to the door jamb.

The block wall is more expensive but way more durable.

I own 2 commercial properties that i did complete inside demolition to and rebuilt everything from top to bottom excluding the 4 exterior brick walls.

If you can tap on the wall and it seems hollow I would say it is loose wire lath. 

My girlfriend keeps a clean house and is battling this daily, they are coming in from the walls, under carpet and flooring, neighbors on both sides constantly having issues.

I don't like the look of a big box on the wall, but I like that better than a big box in the window.We'll see.....

Some exterior walls were 2x3 stud construction and and 2x2 was not uncommon with many manufacturers for interior walls.