I just bought a small (1300 sqft) 1909 house that needs a lot of love and attention. Currently trying to decide if I should selectively demo the lathe and plaster where needed- installing new plumbing & electrical, moving walls, changing window sizes, and general repair, OR if it would be better to just demo it all, allowing for insulation, smart vapor barrier, and air sealing.
My primary concern is the "bubbling" present in the photos: https://imgur.com/a/CZFnjMS
I assume this is due to moisture, but it is also present on some interior walls where there is no plumbing. Would it be worth trying to only rip out, inspect, and patch these parts? When do I make the call that it is not worth salvaging and it all needs to go?
Thanks in advance for your time, attention, thoughts, and expertise :)