You could knock that house down and haul it away for a ball park estimate of 15-20k + demo permits. Once again though be careful. Set-backs for the new construction could be different than for the old. Just do a lot of due diligence. Imagine everything that could possibly go wrong and make sure it doesn’t apply to your case. You have to spend a lot of time at the building department.
From a value stand point it is wise to make sure you are not building the best home in the neighborhood. Generally speaking, to do the tear down and rebuild thing, you want to get the worst dump on a nice lot surrounded by much better homes. You might also look around for a project where someone has done most of the leg work and is ready to build but for some reason needs to bail. You could get what they put into it at a discount and/or huge savings of time and trouble.
