It will make the loans more valuable if you ever decide to sell them and decreases the chances of default. 

About 1/3 were in limbo--neither rebuilding nor selling, while owners tried to decide what to do--sell, rebuild, or fight with the insurance company--or just didn't have the money to rebuild and didn't want to sell. 

You can't decide which one to choose based on the minimal information you provided.

@Mark HafnerI've been investing internationally for many years but it's very difficult to answer the kind of questions you ask without writing a dissertation so I'd encourage you to ask more precise questions in the forum.

Two of them decided to move out in December without informing me.

But occasionally we have issues and tenants need to be asked to leave or just decide to disappear in the middle of winter and it sucks.The worst part is I find the quality of tenant interested or willing to move this time of year isn't the greatest either - often times there is a reason they have to move right now since most landlords don't like ending leases this time of year.Either lower your rent or just hang in there.

Hence I decided not to go with them.

Once you have a handle on that then you can decide from that point. 

We decided to do a full rehab to get nearly double the rent ($2900)and increase the ARV to $260k.  

You will need to look at all the numbers in your underwriting spreadsheet (let me know if you need one) in both scenarios to decide.