Instruct her that property tax appraisal is really a meaningless number to her, because there is no penalty or fee for selling beneath that value.

Maybe you could shim the low spot and lay a floating deck on top of it... skip the demo cost.

If the tile and backer beneath it is in good shape, have you considered just reglazing the tile to improve the aesthetics?

Not only are you unsure what lurks beneath but is a breeding ground for mold, mildew and lots of nasties.First guess time says you're gonna find a fair amount of rot under there and you'll end up redoing the floor.

This is a lot of work and money compared with tiling a more modern home with an existing plywood/OSB subfloor.Typically to start with in this homes, you also have to pull out vinyl flooring and the 3/4 in. wood plank flooring beneath it, which is typically covered in multiple layers of asbestos-laded cutback adhesive.If the plank subfloor is in seriously bad shape (which we can only know after we get down to that level) we take off the planks, install 2x8 sistering and blocking on the joists, and put in a 3/4 in. tongue-and-groove OSB subfloor, followed by a waterproofed cement board and thinset tile installation.This costs a lot of money even if you do it yourself with your own crew, which is what we do and is the only reason who do as much tile as we do.So, as otherwise stated in this thread, I would also not recommend planning to tile large areas of such homes in this area to any passive investor, and most especially NOT any out-of-state passive investor.

Tile, I worry, someone may have to break up someday and not know va tile is beneath it until they have smashed some out.... so think about the underlayment or repurcussions. 

If you're just looking for a quick way to rig it, I'd attempt to shim it from the bottom side with various pieces of 1"x_"

What lurking beneath, in the walls, and up in the roof can eat your returns up for a decade.You are counting section 8 above market rents.

The moisture meter detected the water beneath the tiles, but I still had to pay a leak detection service to come separately and pinpoint the cause.

I was skeptical at first because I always did it the hard way with shims.