Perhaps you have coverage for the replacement value BUT the insurance company when calculating the replacement property uses modern building materials like drywall but your original house had plaster which is much more expensive.

Estimate is coming out around $7500 for materials and labor. 

I did just this in my two flat, it cost me around $150k to rezone, dig down, upgrade everything plus fee after fee after fee and materials after materials.

Quote from @Jimmy Lieu: Quote from @Andrew Syrios: The BRRRR strategy is tough these days (I even wrote an article about it that goes into more detail a little while back: https://www.biggerpockets.com/blog/beyond-brrrr-taking-advan...)In short, high interest rates as well as labor/material costs makes it hard to buy a property with debt and cash flow. 

No labor + materials.  

They specialized in concrete tilt up, but did a lot of time and materials work for a self made real estate tycoon who owned a lot of Federal Way.Along the way I got my CPA license and practiced in several differing sectors including doing some work with low income housing projects.As far as my start in RE, it was with buying my first personal SFR and later moving to a new residence. 

Take you pick.Most questions revolve around Material Participation, and tax filing compliance.

In the meantime, expenses such as debt payments, taxes, insurance, and maintenance persist.Characteristics of a City That Enables Financial IndependenceTo maximize your chances of achieving financial independence through real estate, focus on cities exhibiting the following characteristics:Significant and Sustained Population Growth: Rental rates are driven by supply and demand.

They must satisfy "material participation" test for their STRs to utilize the strategy.

Augusta indeed offers great potential with a strong rental market driven by factors such as population growth and a stable job market.