I would gladly offer to split the cost with him, because I know rebuilding the wall is a lot more expensive than improving landscape and correcting drainage from his lot, but again he just says "Not my problem, the wall is on your lot".

So I have a 2-flat in Little Village and I have a structurally unsound one-car garage that I need torn down and a 2-car put in its place. Anyone have any recommendations for a trustworthy contractor that can complete ...

my understanding is that if it were to be damaged beyond repair you would not be able to rebuild as a sfr, only commercial so that can affect the loan of a potential client

I plan on getting rid of/painting over all of the brown wood paneling in this house, replacing all of the flooring, rebuilding that small deck off the master bedroom, some minor landscaping, replace the garage and front doors, replace exterior door under deck, replace all light fixtures, update the kitchen (keep cabinets and paint them white with new pulls), paint the outside and add siding to the right side and back of the house (front and other side has siding already), change out bathroom sinks and countertops, paint all the cabinets in each bathroom, perhaps install walk in shower in big bathroom that has the tub.I plan on keeping the marble flooring in the entry way and try not to replace any windows.

@Mike Girenko Would it actually take $40,000 to rebuild the interior? 

From what I read Santa Rosa is trying to move rebuilding construction on a real fast track.

For now, while I rebuild not only my finances but also my life, it's the perfect place for me, and anything comparable would cost far more to rent and I have no intention of renting when I work from home and love my location already. 

Repay and rebuild just that simple no reason to dance around this situation.

I have an idea of rebuilding it and converting it to a fourplex, which I know cost a lot of money. 

So I have a SF house that we will have owned (and lived in) for two years here fairly shortly.IF after 2 years of living in it, we tear the house down, scrape it, rebuild on the same lot and sell it for say a 400K gain, is the gain taxable?