In the end, you still have a pig on your hands that will go right back into the mud.

Something is causing the mud to not adhere to the drywall from the attic area."

Especially depending on your approach and if you're ok with appreciation and not cash flow (older houses will have maintenance and newer houses have hefty HOAs and MUDs). 

You may want to think about partnering with an experienced flipper where they could bring additional resources (money) to help make the deal go through.Not trying to be the stick in the mud on your deal, but I've done a number of flips, and have about 40 rental units we manage.  

A bonus "mud room" area at the back of the house features french doors leading to the stamped concrete patio in the fully-fenced backyard.

In addition, some parts of the country have snow, ice or cold weather which makes moving undesirable.

I take dilapidated houses that destroy the value of neighborhoods and attract undesirable elements to a neighborhood, make them nice, add modern amenities, and rent them out to decent people at a fair price that is usually slightly/somewhat below market rates.

They're just throwing mud at the wall to see if something sticks.

@Mason Bear I think trying to sand and mud over the interior walls would be a short term solution, as the floor is pulling apart in the same area.

It has 2 undesirable Section 8 rental trailers across the road, but the rest of the neighbors are brick homes and great neighbors.