@Heather Luu  the first thing that comes to mind is if that check was from the insurance company or insurance company funds, it might be time to get them involved.

Property management involves overseeing and maintaining rental properties on behalf of the property owner.

Nonpassive income: Real Estate Professionals, STRs and K1s from businesses where you have hands-on involvement aka material participation.Each group has its own rules, and generally they cannot offset one another.

Without a VERY good and valid reason, it may be fraud.You may want to get an attorney involved and/or the appropriate state board.

Locally in PA, im just involved with commercial real estate. 

For a single family home the size and scope you're describing, I wouldn't involve an architect unless you're looking for end-to-end project management.   

Infact, I personally dont like the model where the property needs to be exited in 4-6 years to be able to realize PnL for all parties involved.

my property manager asks 10% of total rehab cost, her team will look through the project end to end, without much of my involvement. 

The purpose of the CPL is to expand coverage beyond the commitment/policy and beyond the title insurer itself to others involved in the process (title agents)... your scenario.Quick search -- https://houston.fntic.com/getattachment/6efdc91c-3146-46bc-a...I was saying start the analysis there as that would seem be the simplest route to recovery.

Anything beyond that is going to have destructive consequences for everyone involved.