If you want to value add you are better off with a structurally sound unit that is priced low and you can rebuild from the ground up front loading the risk.  

Luckily, my home insurance policy covered the cleanup and rebuild of the affected parts of the  interior of the house.

@Jack Seiden^^^^^ this right here ^^^^^^^Many of these properties are knockdowns and cost to rebuild or renovate is 2x the arv

Sorry to be so negative, but I wouldn't have a dude who has never turned a wrench rebuild an engine.

What do the local codes say about a rebuild for an existing non-conforming parcel with a greater than 50% loss?

They will expect you to have 20-25% of the cash for the acquisition, tear down, and rebuild.

To me, I'm good at rebuild from ground up. 

After over a decade of building, it’s difficult to even start rebuilding.

@Mauricio SandovalI was getting extremely high insurance quotes for our properties in Ohio, then I realized after reading forums on BP that you have to ask them to quote you on Actual Cash Value, not rebuild cost (which are extremely inflated during these times of supply issues).

My view is there is risk in unpermitted work including getting caught and having to come compliant and/or not being able to rebuild if something happens.