Good Luck, step back and get your head in the game, remove emotions and reevaluate it!

They have a huge emotional attachment to the home and the idea of someone tearing it down and making a huge profit doesn't sit well with them.

Because these type of units are "ugly" (a temporary phase), and usually 5+ units.....the banks WILL NOT LOAN ON THEM (commercial loan needed).Sellers of these type of properties know this and will almost always do seller financing (85% of my purchases).

The banks however know that its very easy for investor to get caught up in emotional bidding which works fine for them.

Dealing with these situations is more about emotional fortitude than anything else. 

Totally normal to experience all of those emotions.

This will allow me to have SOME (not a steady flow since they’re temporary rev streams) working capital to evaluate potential deals.

Sometimes the owner is emotionally connected to a house and prefers to sell it to a family, and not an investor.

I have insurance on the property, and I am looking for the best course of action as there are tenants there.I am currently thinking to cut out the entire piece/ pieces of drywall that are affected and spray the 2 by 4's and everything with a solution(which I haven't found yet and am opened to recommendations) as a temporary solution to help stop it from spreading.

The great homes in the great areas will likely be bought by people who want to live in them and can pay an "emotional premium".