Older installations were done over regular drywall rather than cement board (Duroc) which was very prone to deterioration.

I started racing right out of high school, so no college degree which eliminates doctor/lawyer/cpa/dentist/stockbroker...

It is Cement Block Constructed and was used is light industrial.  

Do it on a warm day so the cement can seal up properly and you can enjoy the sun. 

I spent 1 month there back in the early '80's on my Aust. passport & also picked up a little of Russian by necessity.One intriguing issue I found in coastal construction, particularly the various early 1920's Mansions, was the structural failure of the cement used.

Maybe I could get someone to transfer me the money and I could pay a good interest on it for a year, because I do work with a dentist now that will be in Buffalo with me; he is going to help me into dental school.

If you are going to focus on that area try and find properties close to school that have cemented in the community for awhile.

If you want to go with a FHA loan you'll probably need to either get a cement foundation or retrofit which adds to the cost.

By the looks of it i would say your Dad is right, it looks like the concrete has deteriorated due to water. you do not need a foundation co. just hire a mason to cement it back up inside, but first take care of the cause on the outside, get that leader pipe to drain away from the house by either extending the pipe above ground or dig a shallow trench and run a pipe under ground away from the house. also make sure the soil around the house is pitched away so that water moves away from the house.

I am getting quotes now to determine if it is more cost effective to carpet (making it living space) or just paint the cement floors a solid gray (for a general purpose / storage area).