I’m starting to see what’s happening in Gary and always said to myself that it’s just a matter of time before someone gets wind of this city and starts taking chances on rebuilding it.

The capex doesn't care that the building is worth less than it costs to build it, or rebuild parts of it as things break down. 

Think some of the Moen line is still made in the US - could be wrong - but most of Delta is made out of country it seems like.Good thing about either brand is a plumber can go in and rebuild the valve for next to nothing and it will be good as new.  

That's basically a "fix-and-flip" - nothing extensive, just "lipstick on a pig".A more "extreme" form of that is rehabbing: buy, repair / rebuild / remodel / expand / etc., resell or possibly even hold for cash flow.What you're describing is actually called "Buy-and-Hold" in the REI community: buy, fix / rehab, hold for cash flow.David J Dachtera"Success is not a destination.

This allows you to properly tear down walls, and rebuild to the plans approved by an architect.

If so, then it might be a good idea to tear down and rebuild.

I was originally going to outsource the interior and exterior paint, patching, and pressure washing for my 1200 SF SFH rental, but I ended up being way over budget on the rebuilding of a room and now am desperately trying to slash my remaining expenses.  

With this evidence of moisture I want to make sure I proceed with the rebuild correctly to avoid problems down the road.

Will buyers want to buy this house in a neighborhood of wasteland assuming not everyone will be rebuilding? 

I've tried OPRA, phone call, personal visits, but they always say to get a rebuild letter and wouldn't disclose their record.