Alexey, you make great points and yes I was leaving all of this open to discussion so I did not put my own time frame estimate on a potential crash, I like to stir the pot.Germany was beaten, and needed to rebuild. 

Another was (and probably not applicable in your case) more of a developer/flipper - tear down rebuild. 

More sleuthing disclosed that the magic number is 75%:  When a builder or renovator sells a house where he has rebuild or modified 75% or more of the footprint / ft2, then he has to provide a New Home Warranty to buyer.

I'm married with 3 kids, my name is Darcy Maiangowi.Me and my wife have spent the past year rebuilding our credit from 450 to almost 600.

Just have to run the numbers to see how it affects the basis. it will definitely improve the layout of the home and solve a problem I already was facing with a wall rebuild. 

Are there others doing tear downs and rebuilds in the area.

Tim Pagano, the single family property I own is now zoned for two family properties so most folks want to come in,knock it down and rebuild.

It's a complete or near complete rebuild.

My question is this, so much time has passed with little repair if any on the house, from the street it looks like a skid row home....if I'm able to convince the owner to let it go at what point do I draw the line between rehab vs total tear down and rebuild?

Eventually I think you could demo them and rebuild with better looking, more efficient space.