I would think he would try to get him out of his hair by actually trying to sell the houses to me if anything.

Looks like the home will meet FHA requirements and we will have to pay a bit more to get the crawl space dried out and have some blocks repaired, then have it re-leveled. 

Obviously, neither we nor the tenant want to be left high and dry. 

For books, and audiobooks, I find a lot of the REI books to be a little dry.

Is it a simple cut and dry process with no adverse affect of taxing?

Completely demo the old interior, nasty dry wall, and false walls.

If there's no rot, it is possible to pull out the drywall and insulation and dry the place out. 

That property you thought was a higher cap rate in another market not local to you is now a dog sucking the cash flow dry and you might even have to add money to it just to keep it afloat.These sellers tend to slam tenants in and there is no long term history of occupancy at the building and payments on time by the tenants.

With the dry ground and soil conditions, foundations tend to move quite a bit.

Side note; trying to collect a pet deposit from 5 year tenants who have already been there with a pet is like trying to stay dry after you jump in the pool.