comment 3, no it is not paid to the insurance company but it is treated as a deductible ie you need to put it towards the payment of your rehab/reconstruction, just like an auto policy that requires you pay the body shop your deductible as a precursor or co-cursor of insurance funds dispersal

The implication in my case was that I wasn't able to secure traditional financing (getting a mortgage from a bank) because in the event if the property burns down and needs to be reconstructed, it can't be legally built as a triplex anymore. 

Work has included entire replacement of lower level flooring/sub-flooring, new roof, replacement of half the interior sheetrock, reconstruction of front and back decks, reconstruction of kitchen and bathrooms from ground up.

Reconstruct them.   1.  

I can reconstruct things by reviewing checks and invoices but this would only be a small part of what I do.I guess I am not too worried if they aren't requiring contemporaneous (sp?)

Unless your remodeling calls for a dumpster and a bunch of lumber on the driveway for inspectors to see, you should be fine.Minor electrical need not be permitted, actually.My Permit work is for major plumbing, electrical, hvac, and reconstructing.

The larger units are each leased at $1750/mo + utilitiesThe smaller units are each leased at $1525/mo + utilitiesTotal monthly income = $6,600.00Total annual income with current leases = $79,200.00Purchase price = $708,000.00Property Taxes = $8,750.00/yr (estimated, currently much less, as they have not yet been reassessed following the construction of the property, or re-construction) Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Second I look at reconstruction cost per-sqft in comparison to market price.

I found mold that was hidden during due diligence and it wound up costing over 25k in remediation and reconstruction.

I'm an estimator for a local reconstruction company as my day job but I know that real estate is what I want to pursue for the long term.