There are often rights to rebuild exactly what you had so that you did not suffer a financial loss through no fault of your own - i.e., you couldn't put a 3-family MFH up, but you could rebuild the exact same 2-family MFH. 

Are there others doing tear downs and rebuilds in the area.

Tim Pagano, the single family property I own is now zoned for two family properties so most folks want to come in,knock it down and rebuild.

Problem is that its zoned single family so if anything happens to it, you can't rebuild it.

This investment would make more sense for someone who wants to rebuild and do a complete tear down in my opinion.

After getting a settlement from his insurance company, he is looking to sell rather than rebuilding as he doesn't have the time or patience. - A couple is moving to Hawaii and they put the house, which needs a good amount of work, on the market.  

I had the structure raised and removed and don't plan on re-building.  

Easy to fix if the foundation for the pier is solid - put a temporary support next to it and rebuild the column, or go to a permanent steel (or 6x6 pressure treated wood, if you prefer) support.

I prefer replacement value because it covers the cost to rebuild.

Just have to run the numbers to see how it affects the basis. it will definitely improve the layout of the home and solve a problem I already was facing with a wall rebuild.