"Reconstruction Cost" is not Replacement Cost.

A very successful/knowledgeable investor named Karen Rittenhouse writes in her blog, "A qualified real estate activity is any thing in which you “develop, redevelop, construct, reconstruct, acquire, convert, rent, operate, manage, lease, or sell” real estate.

The result is that you can get your price on homes but that buyers have a lot of reconstructed options to choose from.My idea to get around that is to offer a product that allows borrowers to finish their homes to their own desires.... not a novel idea by any means, but we have a few tweaks to the idea that I think makes it at least somewhat unique, particularly for urban re-developers.I decide that the size of these properties I'd just purchased along with their prominent location (Park Front and near a hospital) that this was the perfect time to put this idea to paper and get started on moving from being a nameless re-developer to a brand name company with a unique process, excellent customer service, and top quality homes.

I do not have experience with re-construction, but I can clean up or something, just to see how this acutally works.

@Teresa Keith With the beltline being reconstructed as mentioned by @Kevin Polite its hard to go wrong with a location close to it.  

Also keep in mind that an investor has the power to reconstruct change the land scape of an area.

Since it is likely your purchase is legal non-conforming with respect to current building codes, any insurance needs to covers reconstruction of the structure to current codes - some policies consider code-related improvements as enhancements to the existing building.I would also closely check the co-insurance provisions, loss of rents limits ($ and time), boiler coverage and general liability caps.A good commercial insurance broker can really help assess the specific risks and you may be able to loop in your other properties under the same general liability coverage if you consolidate with one carrier.

Investment Info:
Single-family residence other investment in Columbus.

Cash invested: $30,000

Cash invested: $30,000 Reconstruction of my childhood home

Also, would be interested in the age,square footage,and materials as a reason for the discrepancy between appraisal and reconstruction cost.People complain to me about reconstruction estimates on brick row homes, but to replace it at today’s material+labor prices (massively inflated and not at the bulk scale as when they threw up blocks of them) as well as bring it up to code (assuming Ordinance and Law Coverage) really is different than market value.