Else, Lender has to bear the cure and give a credit for same amount to the borrower. 

I'm 100% sure there aren't any parents out there in N DE that care about proximity to the 100 private schools within a "15 minute drive" as you pointed out so location has no bearing on their decision to purchase/rent in certain areas..

Bear with me here, because like I said we are the 4th cheapest city to live so the cost of housing is incredibly cheap.

But realistically if you guys are splitting the work 50/50 it should have no bearing on your partnership agreement, it's a wash. 

Even though i m not gutting the building (only moving 2 non bearing walls between kitchen and living room), and definitely NOT removing more than 50% of the walls, the city is MAKING ME add a sprinkler system.

to "What would the After Repair Value be" are going to be questions you will want to know how to answer.I hope this points you in the right direction.  

According to the contractor, the soil on the lot would allow for a much more reasonably priced system and tells me I should try and purchase the land. 

What will the market bear? 

I am going to answer your questions in a different order so bear with me...4.

Even if we had to pay out of pocket it's a much lower cost to do things like that when it's trashed and you're redoing 100% of the flooring, the electrical, rebuilding non-load-bearing walls, etc. no matter what.