Usually my clients will decide to rebuild with the insurance $ as it will financially make more sense then to pay off the note. 

I look at beat up areas and want to rebuild neighborhoods one house at a time!

Rebuild 70% off , I purchase Honda Insight 2010 , 40,000 miles for 6,000$ And after 5 years 400,000 miles will sale it for 3000$ lol .

My grandson, a firefighters, home burned down, and we will be rebuilding that , along with new construction.

I bought the property, had the front door boarded, the grass mowed 2x, spent 15 minutes cleaning glass up from the storm door that fell down, and am flipping it to an investor who's going to tear it down and rebuild.

Keep in mind it's not all roses I've learned many lessons along the way and am in the process of rebuilding my porfolio again.  

Whomever told you that gutting a property and rebuilding it for 30K in Baltimore City literally has no clue what they are talking about, guts are running 50-55 dollars a sq ft, so 1000 sq ft will cost you 50k-55K to rebuild correctly.

Two, the total rebuild or replacement section is a point of interest.

I don't want to get into a complete gut and rebuild on a 4800sq ft property.

It's a somewhat rural highway out of city limits, so rebuild value is probably not substantial.