I hear you @Nathan Moore: I'm also currently working on (re-)building my U.S. portfolio from abroad (Medellín, Colombia right now)!

It’s in an area where OKC demolished some historical black neighborhoods to make room for the health center and interstate, and it’s finally starting to get momentum to rebuild.

Hey @Peter Thyen I took know all about the stressors of rebuilding a property and managing it from our of state.

The owner has done some questionable work with the kicker being an un-permitted unfinished addition that would either add 150 sqft or cost to remove/rebuild, still not sure how I want to approach this. 

After the rehab/rebuild is finished what would the most lucrative option be?

Most insurance is based on replacement cost which is the estimated cost to rebuild the property in the event of a claim.The easiest way to get your questions answered is to talk to a knowledgeable agent!

Equalling around 105k, definitely a tear down and rebuild property in a neighborhood where the ARV would be roughly 150-200k.

I will chime in, I do know a investor who bought in K.C.M.O, 20 st and   Broadway zip code 64108, took on some  huge old houses turned them into apartments   they are  all are rented getting top dollar  .They are  rebuilding and   young hipsters are  moving in it seems to be expanding  .They have loft apartments  being made out of a huge old buildings they  are sold out before  finished ..That are rolling out street cars for downtown that helps big time!!

Since Japan is susceptible to earthquakes, typhoons, fires, and previously wars, the culture for home ownership and rebuilding is not there as it in US and EU cultures.

You can also take a further deduction for rebuilding your now-depleted reserves, but that has to be over a reasonable period of time as well.So you will be paying tax on ordinary income to the extent you pulled money out of the (properly established and safeguarded) reserve account less the amortized expense and a smallish deduction for that year’s contribution to rebuild reserves.