I found out that in order to be lead safe there can't be any peeling, chipping, or cracked paint on the exterior as well.

A stained white carpet and chipped granite counter tops.

i think this is a "both / and" answer. wealth is built through asset appreciation so I think it's important to hold those blue chip properties. 

Either way, it gives you another negotiating chip. 

It will take time to sort it out and the chips will fall where they may.Meanwhile, in this country it is still "innocent until proven guilty".

Waco is not bad, but has seen a lot of appreciate due to all the Chip and Joanna nonsense. 

If you partner with a builder and or GC, you will need to know the projected value of the JV project and compare it to the current "As Is" value since this is the "Chip" you'd have to play with in a JV structure.

If problem areas are identified in the inspection report you can use them as a bargaining chip to ask the seller for concessions.

And the bonus is that this added income can help chip away at that loan.

Our company manages 80% of our total properties under manangenent in the west and northwest suburbs and I swear buy it as blue chip secure investments.