Surrounding lots are worth double the amount of the damaged house

[Mark Burik]

Hi Everyone.

I started a business providing accommodations to athletes last year and it really peaked my interest in real estate. I've listened to a couple hundred hours of podcasts and spent more time than I'd like to admit on trulia. I have an idea and I don't have many details. But I'm wondering if it might be feasible.  

I am looking at a house that has undisclosed water and foundation damage after a hurricane. Its selling for 150k "As is". Similar sized empty Lots are being solid for and average of 275k. Would it make sense to purchase this home and knock it down and then sell the lot? How much would it cost just to knock it down and clear the land?  Or I can investigate into some heavy repairs and similar homes are going for 400k... 

What else should I be thinking about here? It's a popular town with great schools by the beach.

[Percy N.]

Make sure you understand the zoning and building restrictions which have been placed since Sandy.

Most rebuilt houses need to be elevated, which costs about $100K. Flood insurance is also high and in some areas you are not allowed to rebuild, I believe.