For about the last 6 months I have found that houses are selling close to what the rebuild cost would be.

Your not going to rebuild them if your self insuring cost far to much to replace than what the true value is.. ( this is true in most of the US were values for existing homes are sub 100k) So for us we were paying say 50 a month for insurance X 350 or 17.500 a month.. we could replace the homes for 50k no problem ( as we buy direct and wholesale) so if we cut the insurance down to just liability the idea was we could just insure under our big umbrella policy..

Some tear-downs and rebuilds in really higher-value areas, but mostly with large lots, and smaller and/or poorer quality structures.

Your estimate of $20 a square foot would mean I could rebuild for $30K and this is obviously not going to happen when you consider high cost items such as new electrical, new plumbing, new HVAC, new kitchen and baths, etc.

Did you tear down the existing home and rebuild?

It was a pretty dark and humbling experience, but I was able to learn valuable lessons from my mistakes that I’ll never repeat as I continue to rebuild.Now that I’m rebuilding and in acquisition mode, the niche that I’m finding more success with is direct mail marketing to commercial property owners, who have owned their property for 15+ years and may be looking forward to retirement, tired of being a landlord, and/or their tax bases has or is about to expire.

Should I sell my house, pay off debt and rebuild my credit score?

Although Quicken Loans has been involved in other projects to help rebuild Detroit.

Many builders acquire lots or tear downs and rebuild +500k properties.  

From your last post it sounds like there will be a supply glut with so many wanting to sell so it will be an interesting development to follow as the rebuilding continues.