Insurance could be based on the cost to rebuild(so it would be a totally new structure) vs. the value of the structure.  

I called progressive just to see and it was $616 for the year for a property with a $140k rebuild cost and $1k deductible.I did not compare with anyone else.

Even if your insurance company rebuilds your property, there may be no one to rent it.

So, even if your insurance company rebuilds your property, there may not be anyone to rent it.

Essentially you’ll want to be able to “live poor” for a couple of months in case of vacancy or need to rebuild your reserves due to expenses.With the variation you’ll see in cash flow from your business you will want some additional cushion in reserves or cash flow.

And then that minus how much more it would be to scrape and rebuild (this is usually only worth it if you are building an apartment) versus rehabbing. 

You could quickly lose not only your investment, but also destroy your credit and make it very difficult to rebuild.

Unless the house is old enough to be historic, it seems cheaper to tear the thing down and rebuild to suit.

Next week is going to be very busy as I try to manage our Chicago team and at the same time rebuild our Ft Myers team.We lost the Avondale 6-unit apartment in Chicago.

Same with my real estate lawyer - the check reminder worked here though.Best one yet - prospective contractor for demo and rebuild (age 32), asked me (50) if I was doing this as a hobby ( total cost including purchase initially $1.5 million. ) Err no ... and he didn't get hired!