The picture captures the extent of the mold that is visible.

slightly straying from my own topic, I often wonder (as can be demonstrated in this scenario described) if the bigger picture really is that everything we do comes down to personal (ethics, values, decisions, actions, etc.).

(you get the picture)Anyway, I offered $18,500 if seller would finance and seller verbally accepted.

@Joshua Springer  I just looked up pictures of the home and it is fantastic.  

That would only be important out here in the sticks, but hey, it's all money.I went in, showed my pictures, explained the overall nastiness of the place & asked that it be reviewed.

What has to be done first to set this in motion?

Of those, your ad is the best laid out and with the best pictures, but at the end of the day no one is paying for pictures.Your market is also saturated with rentals, you have dozens of rentals all within your immediate neighborhood and its not the kind of neighborhood where upgrades will get you extra money.

We can see from the picture the house has zero architecture to preserve.

On the other hand, I'm living in a gentrifying area where it has it's own unique challenges, not in Manayunk with a pool :) I know this doesn't answer your question about the numbers but hopefully it'll get you thinking bigger picture so you're not painted into a corner when you're ready to move out.

Low-income neighborhood and lower price point has attracted FHA applicants ... and all the FHA hassle that goes with it. 2 buyers fell out due to finances, 1 buyer backed out after the 25 page FHA inspection painted a picture of a house that deserves demolition.