If you tear down the house, you might not be able to re-build on it, even a similar 900 SF house. 

Make sure to inform them that issues related to normal wear-and-tear are the responsibility of the landlord....so it’s not like they’re coming out of pocket with anything.

Tearing them out was not an option.

My agent had a roofing contractor come out to take a look and they said it was only wear & tear and that they only needed to be painted and nothing to worry about.After the rain came and the leak was discovered I contacted my agent again to have his roofing contractor come out again.

It was so bad I turned it over to my insurance.. and they agreed it was way past normal wear and tear and they paid.. and then they went after the tenant criminally.. 

You can either fix the property up to a similar condition to the listed competition, or sell it as-is to someone else who will fix it up to either live in or flip, or who will tear it down and build something new (if that is a thing in the area where it's located).

If they owe you money or have done damage to the property beyond normal wear and tear and what the deposit will cover, you can indicate that they are not in good standing (with proof of course).If they aren't in good standing with you, they can't get a voucher to move somewhere else. 

Make sure each step is permitted so that you don't have to go back and tear anything out.  

Learn the full cost of say a new floor for example (tear out old, new underlayment, new flooring product, labor, and disposal costs).

If you want to prevent structural noise (foot steps and low frequency) you really need to decouple the ceiling which means tearing it all out and rebuilding a decoupled ceiling.