I expected to see it for sale after he started getting violations, but he arranged to have the bare minimum work done and it remains vacant waiting for the next violation to come his way. 

So in this example (before the repairs scenario) you would pay the tax on 100K and shelter whatever remaining gain there was.3.

They would have to defend title.Now changing perspective to the adverse possessor side, the AP would have to prove actual, open, notorious, hostile and pay taxes and satisfy their state's statutes as to improvement at prove up trial.

However the secret recipe will remain secret.

If the numbers are strong enough then it may be worth the hassle, but if you are using cash to purchase something you will have to dump the remaining cash in it may be time to cut the ties. 

And even though NW pdx and the Pearl will be the most devastated when this happens, it remains the highest priced real estate in town. 

For the interior it all depends on the current condition of the home and what historic details are remaining. 

Also if the advice will remain the same in the case where there is enough resources to make 30% down payment towards the 5+ rental units. 

@Lubasha WhiteOk so I picked through the chain of mortgages and there are 8 that were satisfied and 2 outstanding.

So say your friend purchased for 100k and the home is currently valued at 130k; his remaining loan amount must hit 80k and must be 5 years old before he can get the PMI dropped.