We have been through a few renovations of older buildings (1937 would not even be considered middle aged around here) with {live edged} planked sheathing - some balloon framed, some more similar to modern construction.In your situation, I would take the entire wall section back to the studs and outside sheathing and use a closed cell spray foam insulation {if budget allowed, I might take the entire side of the house or entire house back to the studs}.

And the wiring in an old building like that wouldn't have been designed to handle anything like a modern electrical demand so the temptation to do something like that is very strong (because you're blowing fuses all the time).

This year, one of my properties caught fire so I filed a claim with them and received the payment.However, they told me that they cannot insure that property because of my claim filing history and the area of the property (that property is not in the best area of Atlanta though it is not a war zone.).So, I contacted American Modern but they told me they had to refuse to insure me because per their policy, they cannot insure for someone who filed a claim in last three years.What should I do with this property?

He also mentioned they don't have the modern safety features.

@Phil Glantz is exactly right when he says the appeal to urban (or urban aspiring) younger buyers.They definitely have a more modern look than the Shaker family of face frame boxes that are in every tract/multi-family property that goes up.I used them on several projects in DC and haven't had any callbacks on quality.

Being in LA I'm luckly that there is a big market for Modern architecture and high end interiors.

Modern zoning code was written after Chicago was built, so most side streets are zoned RS which is a SFH.  

The rough opening is approximately 80" x 144" (not quite as tall as modern doors).Who's had to do this? 

Palmer and Forks Township also have nice older (read: solid, well built) homes and there is starting to be some generational turnover--the people who have lived in these houses since the 50s and 60s are passing away and the houses need updating which gives you the opportunity to modernize them and add lots of value.

All the modern tubs/showers are being tiled.