I was assuming this was a major rebuild/addition project given the price and area.  

I am not sure if this is the correct forum to post this, but I didn't see anything specifically related to my question.I am currently trying to build/rebuild my credit.

If so, how was your experience with your homeowner's insurance company and the rebuild? 

I had to put the contract in my parents name because my credit just isn't where it needs to be yet from a business collapse about 7 years ago and I am rebuilding credit now.

It's basically a gut job and rebuild from studs and up.

Knock it down and rebuild for something that smallNot only will costs be close to equivalent but you will have a new construction house versus a house which was repaired with a bad foundation.

I still plan on waiting a few years and just working with him and taking a percentage of the successful leads which I provide and just saving and rebuilding my credit.

I've found a potentially great deal but two sets of contractors have identified extensive foundational and termite damage and are recommending a demo/rebuild.

Neighborhoods don't matter because investors are coming in buying the cheapest run down pieces of sh** and tearing down and rebuilding new multi-family if possible.  

This caused us to rip apart walls and rebuild things that were damaged due to a minor problem.