Better to build from scratch or buy a wreck that is cheap and rebuild it the way you want.  

The problem with mixed use sometimes is you cannot rebuild it in the same configuration (can't get insurance for replacement and city/county won't allow rebuild).

I figured this would create some possibility of buying dirt cheap land in heavily affected areas and maybe holding until people rebuild around it and being the value back up maybe??

This is the cost of rebuilding the same product.

So, even if your insurance rebuilds your property, there might not be anyone to rent it.

YES only your investment, your not going to rebuild if total loss.  

But multiple credit cars, car payment, rent is a no go.I've had a few tenants that went thru foreclosure when the market crashed, and want to rebuild.

I toured it but found that it would almost need to be an actual rebuild since the foundation is cracked, the roof has a tree growing out of it, and just about every surface in between is painted or ruined by former tenants.

For my clients buying this as a vacation rental, even if they got coverage and could rebuild after a fire, the value of the short-term rental in Colorado would be ruined b/c no one wants to visit a scorched mountainside.If you're an agent like me working with STR/second-home buyers, or your just buying yourself, navigating the wildfire risks and other natural-disaster risks of a home are now part of the transaction.

It's likely to better to evaluate the property of the price per sq ft to rebuild + land value, and see where it's priced to see if it's an appropriate buy.