Hi Aaron,
I would suggest to use several steps to create such explosion.
Preparations
- House before damage
- House after damage
- Tires (animated or physic enabled)
- Large wooden parts for physic effects
- Preanimated explosion with lots of tiny parts
- Sprite explosion / Particle effects
- Several Soundseffects for explosions
Here we go:
Show your undamaged house in a nice environment and let the player some time to remeber how it looked before the next step start.
Start your animations and sound effects ( fragments bursting out of the building), the animation and lighteffects will cover the original building.
Start some physic actions (just a few parts should use physics) and don't forget to start some noise when those parts hit the ground.
Hide your brand new house and show the damage model of that building.
Start the tire animation, or enable their physics and give them an impulse to start moving a bit.
Maybe you want to leave your smoke particle effects and some fire effects active.
Such an explosion is not simple to create, but you would not want to leave all this to your physics engine (remember you need some cpu time left for your game...). You should always think about how it shoot look like, then how to split this big thing into small parts (physics, animations, particles, sound,...) And finally, don't forget to be sure if you need the effect such big or if it would work if it only a fraction of this.
If it is part of a story, you might want to create this part as a small movie...
Once in a project I had to let a small toilet house explode... It was a funny composition of several effects (physics, sound and animation).
Good luck and keep your ideas in motion (don't give up because it seems to be a big task ((it IS a BIG part ))
-- slacer