Always happy to help those local to me in SW Ohio and Northern KY.With that said, technically you can qualify for a 203K loan with ANY amount of repairs (no upper limit) as long as the foundation is intact. 

Hey all - I'm evaluating a property just south of Madison, WI, and there are obvious problems with the foundation.

The foundation and external brick are all in good shape, but the prior owner let it go for some time, and the leaking roof has caused a lot of damage.  

In addition to the cost savings in demo, you also have the advantage of being able to see behind the walls to know what the electrical/plumbing is like, if there is moister or cracks in the walls/foundations, and if there is an wood destroying insect damage.  

The one that is near and dear to my heart is JDRF Juvenile Diabetes Research Foundation I believe it is one in 4 children are diagnosed with T1d (Type 1 Diabetes), unlike Type 2, it isn't related to diet.

Texas has lower entry costs but property tax is severe in many locations and there are many locations that have significant foundation issues. 

I'd worry about the most expensive things in an inspection/walk-though, foundation, roof, windows, HVAC, electrical system and plumbing. 

I agree with @Steve @Steve Babiak that the RC advocates lack the foundational understanding of the various economic variables of the rental market. 

I wonder if they were saying it costs about 10k for the materials to "print" the exterior walls or something, not counting the labor, overhead and machinery involved to build those walls...Not even counting the foundation, roof, utilities, trim, partition walls, doors, paint, etc. 

The properties I am bidding on are generally 80+ years old so it's mostly to protect me from fire damage and foundation issues, but I can see the merit in your approach.