One option I have is to demo and rebuild the house using insurance money but it will take about a year and lot of involvement.

A cashout refi of the current loan on one of the properties may be an option.

Quote from @Dennis McNeely: In a sandwich lease option, the investor exercises their option with the property owner to purchase the property when the tenant-buyer indicates they're ready to exercise their option and purchases the property.

@Rene Hosman all good options! 

They are your best option, because when you have tenant turnover, at least you will still have income from the other units.

I had a client who actually decided to pursue converting the house to a boarding house to avoid any problems in the future.

Looking my insurance policy it mentions that I can opt for settlement under Actual Cash Value vs Replacement Cost. 

Fannie & Freddie could be a great option for you but they have some strong requirements, Net worth, experience, liquidity, DSCR just to name a few.Happy to connect & see if that product could be a good fit for you.

Are there other options that could be better for a construction to perm loan (not through a traditional bank)???

I've actually started looking into that today, thank you.