Low / no equity homeowners will walk from their properties and focus on rebuilding their lives as renters for the next 2 years.

My insurance Agent gave me two options to ensure my Duplex:1) Replacement Cost - if building is damaged the company buys the cost to replace the item including current labor and material cost - for example, if a fire occurs and kitchen is damaged and to fix it cost is $10,000 the company would pay the $10,000 less your deductible - if you want REPLACEMENT COST coverage you need to insure the building for what it would cost to rebuild the building from ground up based on today's price for labor and materials - Company replacement cost estimator shows it would take $328,000 to build the build like it is2) Actual Cash Value - this is similar to MARKET VALUE or Replacement Cost less Depreciation for age - for example, kitchen fire again and to REPLACE the cost is $10,000, however if you have Actual Cash Value coverage company would depreciate for the age and may reduce claim with 30% depreciation, so payment would be $10,000 less $3,000 depreciation leaving payment of $7,000 less deductibleCan you tell me what type of insurance you have?

It might be good to just demolish and rebuild from the sounds of it.

Generally, an insurance company is taking the unique features of your home and determining, based on their data, what it would cost to rebuild your home if disaster struck.

The rehab consisted of rebuilding the deck, pouring new front concrete steps, painting the exterior of the house, revamping all the landscaping, knocking down a wall in the living room to help create more of an open concept, sanding and coating hard wood floors, new carpet in bedrooms, changing out several light fixtures, swapping out the vanity in the bathroom, updating the kitchen with new appliances and creating an open concept by knocking down a wall, painting the entire interior, adding recessed lighting through the living room, updating all plumbing, and installing new gutters.

I'm wondering if you can use a HELOC to do a complete tear down and rebuild. 

Long term: there will be people who choose not to rebuild if their home burned down, so there may be some land available in residential neighborhoods that would be easy to build on. 

If you have replacement cost then you can easily rebuild if you choose to.

That’s put you in the green monthly along with free “rent” for yourself and help rebuild cash reserves for your next property.

You aren't going to rebuild a new building, most of the time.I also set my deductible for 5k.