All it does is mask a bad deal.

A neighborhood house appears vacant for 3-5 years according to my father-in-law, yard unkept, driveway overgrown, siding/roof peeling, window shades a mess, etc.

These are old original windows where I have repainted peeling paint many times over the years. 

Always keeping eyes and ears peeled, but looking into out of state as well.

There's some peeling paint, cracks in drywall etc.  

Falling gutters, roofs, missing railings, peeling paint and bars across doors that don't have steps or a deck are things I've seen in the past to be addressed by both FHA and conventional appraisers.Sorry I was so cavalier with my terminology.MI or MIP is the term used to describe the Mortgage Insurance Premium on FHA.

Older homes tend to be like onions, you peel one layer back just to find another layer of problems. 

It's hard to work with, snaps if carried by one person, spider cracks is nailed incorrectly, requires special tools and a dust mask, needs paint and a lot of caulk.

If I want to add texture to it (orange peel or knockdown) which texture will be more easy to do?

It's typically a chemical process that will peel paint but, unlike mold, doesn't require removal of sheetrock.