Definitely a non-exhaustive list and I'm not privy to your exact situation but hopefully this helps.1.

Would you be able to withstand a high dollar capex event/ need or another increase in HOA fees in the future?

That is, sometimes an agent and seller with lower the fee to the agent when the property is tough to sell.This is a strong list but it is not exhaustive.

I'm curious to hear from the experienced folks - finding the right property at below-market value for BRRRR seems very exhaustive, wouldn't they be more motivated to sell a property at market value for less work and more profit?

I don't believe DSCR would be the right way for you to go on this until you've exhausted all of your conventional options (and I'm a DSCR broker/lender).  

Just to confirm I check the exhaust flue, it is warm and getting hot.  

Fraud theft conversion not withstanding.. my main point Is the NPN space is a high risk niche.. you would not get those kind of returns if it was not.. so one would expect some bumps in the road.. but if this guy flat stole your money.. then OK  I get that one.. its happened to me over the years. 

We don't want to hand it over to the ones we did not like, as it may become more of a headache.If someone could advice what can be done next, would really appreciate it, feels like our options exhausted, but i don't want for the house just hang in there, eating interest.

It is a very protracted and complex case, but I shall summarize best I can:- husband caused the fire and committed suicide- insurance claim denied due to arson- wife filed bad faith claim against insuror under innocent spousal relief argument- insuror still refused to pay claim- wife exhausted all resources; abandoned further claims against insuror- city deemed property uninhabitable and issued demo order (lien)- property demolished along with the solar panels- husband was the sole lessee of record on the solar lease- wife submitted death cert to solar lease co.- bank just recently issued cancellation of debt to wife for 1st mortgage- wife wants to wash hands of it all and sell vacant lot to meMy discussions with the public adjuster I brought on the case was that since the property no longer exists, the solar lien is wiped out, but I'm not sure.    

I've exhausted my effort there..