Rebuilding a home is it worth it

[Allen L.]

Hi guys,

I'm evaluating a fire damaged home. It has a good foundation but half of the house is burned down, so my contractor recommended a full frame rebuild. The house is about 1000 sqft in a ok area of town. He quoted me around 55-60K for a 1-story rebuild with an unfinished basement.

The county has the house appraised at 95K pre-fire, so with a full rebuild I'm thinking maybe 110-120K ARV? With the cost of purchasing the property plus some ad hoc costs, the total cost to me would be around 70-75K. Taking 75K cost and 75% LTV with a refi, the "no cash down" appraisal price comes to 100K.

Would you guys think a project like this is worth it or is the amount of risk not worth the reward?