With 3 income streams per house (up/down/garage) most bring in right around $36,000 annually in rent so I would likely have to press to get additional funds as rebuilding in 8 months would be fairly tight (especially this time of year).

No time to rebuild. 

I am currently not buying but mostly because I had bought a lot in the previous 2 years so I'm not in the rebuilding liquid capital phase.

Usually cheaper to rebuild it while it's still up.

That coverage is designed to cover the additional costs if you are required to rebuild to current code after a covered loss.

Another question is, will the insurance company allow you to insure it to ACV or actual cash value or are you required to insure it as RCV replacement cost value - if so you must insure it for the insurance companies cost to rebuild the property new, which could be much different than what you would like to have it insured for?

You might end up in a very good position if they expand the rebuilding of the city.  

Full rebuild and removal of 2 big trees.

If this is from the result of a claim you may want to find our the length of time the potential tenant has to either rebuild or find (rent) a new place.

@David Zickafoose  My mentor was telling me to go ahead and buy it, but to then knock it down and rebuild or leave it as a vacant lot.