They tear it out when they leave, and leave you a big hole.  

Considering doing this on a new duplex but wondering about the wear and tear it has on a property.

While this leads to operational headaches, the bigger factor is the next one.Your lower quality tenants, typically, create heavier wear and tear and turn over more frequently.  

Nobody will ever respect you for the blood, sweat, and tears you will go through dealing with all of the pain and agony of trying to navigate such a ridiculous system.

I’ve heard horror stories of people who have to tear apart their house because of work that wasn’t permitted.I’m wanting to buy another home and rent this out as a duplex but I’m worried that if I apply for a rental license or anything that’s dealing with the city, they might find something that’s not permitted and we’ll be stuck with a hefty bill.

That can be fixed by tightening the nut below the sink and is normal wear and tear.

Now, everytime we turnover a downstairs unit, we tear out the lathe and plaster bathroom ceiling and screw up pvc panels for the ceiling to ensure quick and easy access for when we do have and plumbing issues.

Sheriff sales are unpredictable if the house is a tear-down then you should not encounter heavy bidding.

I am new to the game, but do homebuilders consider buying distressed properties, tearing down and rebuilding?

I have a storage room that is old and worn (leaks rain and has a smell of rat droppings) that I have a plan to tear down and rebuild in the near future.