@ Mary Jay - your post made me laughI used to own some $400K rental properties in Phoenix, and everytime I went over, I kept thinking "man, with this global warming, in 20 year, phoenix is going to inhabitable..." 

I recently bought an inhabitable triplex, made 40k of repairs, got all units rented out, and now have been told I can not refinance cash out unless I hold the property for 6 months. 

Though there is a $19k discrepancy, I feel like the HOA has admitted they are responsible for this cost and their insurance adjuster has contacted me to try and help me, since the physical unit was damaged.In the meantime, the City of Santa Monica is forcing me to relocate my tenant, as my unit is inhabitable.

You can roll in your closing costs as a seller concession and you can also roll in your mortgage payments into your loan during the renovation of property is inhabitable.

With the work that needs to be done, is it inhabitable?  

Usually, critical repairs need to be done promptly while other not so needed can wait; depends on how inhabitable the repairs needed continue to compound. 

To attempt to bring this together...let's say a kitchen fire happens and makes the house inhabitable.

If you can rent it for $575/month, and depending on your loan, loan costs and term of loan (and cost to make it inhabitable).

You say it’s up to code but is it inhabitable

Garbage, for example, can just be split evenly whereas water will depend on number of inhabitants.