So, someone should have had insurance that will cover the cost of rebuilding after the fire.The fire investigation is still ongoing.

In an A community the land value is high enough that if the subject property were to burn down, it would make sense to rebuild a bigger and better property.In a B community the land value should be substantial enough to rebuild the same property, in square footage and included features.

Be that as it may, be aware if the rebuild costs exceed generally something like 50% of value, you have to bring everything up to current code, which may include current floor elevations being higher, which would cost more than the end value.

I have two other properties that have $100,000 in equity in them total, but that equity doesn't represent much more than about 30% and 40% respectively of the value of the home.There's also a COLLATERAL BALLOON option that I'm not familiar with but will talk with my banker about tomorrow.Really looking for creative ideas here while I rebuild my dry powder in cash and then start aggressively paying down these loans for the rentals I currently have and would like to add to my portfolio.

@Charlotte Edwards I would get replacement coverage that would cover cost of rebuild and that should be a little more, but not three times the first quote.

There's been a couple of tear downs and high end complete rebuilds going on in the neighborhood.

We are of the age where we just do not want to go through the rebuilding process and so it is just time to move on and give others the opportunity to build their dream. 

But my husband says it would be better to just use the money to put into another house, not go through the hassle of rebuilding.

Same thing is true in one of my markets for run-downs, if people buy run-downs to tear them down and rebuild really nice properties for themselves they will pay more than you will 100% of the time.Also, house hacking is not a pure investment for most people its a living situation.

This is not the same as the market value, but rather it is what it would cost to actually rebuild the structure with the same materials etc.