Added back room problems

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Hello,

My Aunt recently purchases a new home and it appears that the back patio was enclosed to make a room. She wanted the floor retiled so I removed the old tile and discovered that about a 5 foot section of the slab drops about 1.25 inches. There also seems to be evidence of water. It looks like it may be leaking where the roof meets the chimney. Also there is a sidewalk around the room and i believe when it rains, water comes in under the walls.

I'm thinking i could reseal around the chimney, remove the sidewalk, and float out the floor. Also maybe a french drain around it.

My Aunt is thinking we should just tear it down and rebuild the room on a peer and beam on to of the slab. Seems like overkill to me but I'm not a pro, just trying to help my aunt. Any advice would be appreciated.

Thanks!
 
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20160129_102705.jpg
there is a seam in the concrete from the a/c unit to my dewalt bag then over to the door in the pic. This is what is unlevel.
 

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