if it's a big job, use a draw schedule that pays them for demo/prep. 

.- paint- trim- very light demo + dumpster- trim, a little flooring fix, commonizing the look and harden it (bath fans, remove storm doors, put fake bottoms in sink cabinets, add a tub grid drain, etc)- spring will need some concrete.that's it.

You can drill down pretty deep into this stuff on the governments website.https://www.census.gov/data/tables/2016/demo/popest/total-metro-and-micro-statistical-areas.html

Something like that is worth land value - demo costs. 

They will all do demos and let you know what they do better than the other.  

Might be better to demo the whole thing and build new from scratch or change to another asset type that is more in demand in the area like retail. it all depends where it is located.   

For the beginning give enough to cover the initial materials/dumpster and tell contractor you will release more funds after majority of demo is complete.

@Frank Yang & @Ron Flatt the rules that govern loans and the "loan limits" are a combination of the Dodd-Frank, CFPB, Consumer Protection Act, and others (SEC is the Securities Exchange...that's for trading of stocks and what-not).  

If you are looking to combine your property management reporting with your accounting and starting to look into all-in-one software packages, ask for a live demo of the software and have the rep walk through the accounting process in the actual program.

I would like to offer this guy a few thousand for the house and hopefully collect on the insurance proceeds to demo the house and hold onto the lot for now.