For example, what is the cost of living now and projected in the future? 

NWA is really growing, lots of great opportunities for investments and the cost of living is still affordable.

Have been house hunting for awhile for a primary home or multiple, I am now considering building new rather than buying old ones with high maintenance cost.

My local market is cost prohibitive to invest in and the thought of assembling a "team" of unknowns in another market was scary. 

You'll need money for: closing costs, down payment (if any), operating capital to get the construction/rehab started (most HMLs reimburse you in draws for the work completed), along with some liquid reserves on top of that.

Meaning, if you take the money only, you would have depreciation recapture from your cost basis up to the original purchase price of the building (not including the land cost because it wasn't depreciable), plus a capital gain up to the insurance proceeds.Hope this makes sense. 

Quote from @Stepan Hedz: Selling fees (estimate), $30,000, and holding costs?

You'll want to incorporate interest costs on the HELOC while you're using it, but that will add to your holding costs in addition to utilities, closing costs, etc..

House hacking by purchasing a duplex, triplex, or single-family home with extra rooms can help you reduce or eliminate housing costs while building equity.

Holding costs should be lower than using all of HELOC. 50k won’t cut most purchase prices, so have to use some of HELOC too.