Permit...
You mentioned it being a pain to get a permit for building... Where I grew up in Wisconsin, you needed a permit only for NEW construction. One guy got around the law by buying a delapitated house, ripping half of it down, building half a house on the existing basement (connected to the existing house), then ripped down the rest and finished the house. BRAND NEW HOUSE with NO PERMITS. It is still considered the original house. Maybe this wouldn't work so well for you with a crumbling slab, but you can keep it in mind.
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