Maybe if you built a really small one, but my insurance company has a 'cost to rebuild' that is pretty much equal to the cost it took for me to buy a place out there.

Is it based on square foot to rebuild and I should insure them based on zillow value.

Especially because you can save the cash flow to rebuild capital for another investment.  

It's still always rebuilding from some storm or another.

After winning that lawsuit, it's definitely your property and you can sell it with a regular deed or tear down and rebuild without the risk that a former owner will come back and say "thanks for the gift!"

I currently have a similar issue and your number is inline with estimates I have received to rebuild 25 ft of a basement wall.

Probably would just need a tear down and rebuild scenario. 

I'm now trying to rebuild my residential business while I'm searching for investment partners. 

I would focus on rebuilding your credit, and maybe start wholesaling or some other side hustle until you are able to correct your credit, and set up a savings account to save for a future real estate investment.

I have it under contract at $110k but every insurance provider I've called is making me insure the building to $400k+ (because that is their estimated rebuild value).