Flood insurance is also high and in some areas you are not allowed to rebuild, I believe.

HOW MUCH IS THEIR RENT.. section 8 has defined rent amounts for buildings, if they are below market as them what the process is.I had houses in Easton PA, had one section 8 tenant who was great, one that lasted 6 months and I had to rebuild the apartment afterwards.

As units are turned over, I can dress things up a bit, but a complete gut and rebuild would not be profitable.

My potential partners own the property upon which we intend to tear down and rebuild.

Either way, it's not the responsibility of the OP to let social investors better the neighborhood nor to rebuild the community himself.

If you have lots of differed maint. then that bill will hit you all one time and then it might be cheaper to just tear down and rebuild, but if you upkeep along the way it is easier on the wallet.  

If the properties are being bought below the cost to rebuild won't the values eventually go up?

They came to look at the place the same weekend, filled out application, gave me each two paystubs and letter from their previous landlord because when I asked for their reason for moving they said their place were being torned down for rebuild and that they have been living there for 9 years and the guy also work for the landlord for 9 years as well (too good to be true).

Its much easier to grow into a solid plan than to grow haphazardly and have to go backwards to rebuild poorly built systems or processes.  

Initially it was to be an investment property but I lost my job and decided to keep it as a primary residence until I can rebuild my finances and credit.i have since had my surgery and have found another job but for that 6 months I couldn’t work, I had 2 mortgage lates and my credit took a huge hit but it’s being repaired through me paying my debts down and paying bills on time since.