You will want to talk to a CPA to see which hours count and which hours don't as there is a lot of gray area with your situation. 

The only way to reverse these is to prove the tax collector screwed up on notification and that is primarily done by counting the days in the newpaper.. they must publish for 21 consecutive days prior to the sale.

I've been there and felt the same but  IMO it is a churade because you cant count on anything with the legislation that's in place in NY and esp. down state. 

If I finance the rebuild then the 1031 exchange presents some challenges (I will need to land a property that cash flows or breakeven so that I can get the loan for my rebuild, or banks will count that debt against me).

You’re looking at a market where cash flow is more predictable, and that's something you can count on in the long run.Another reason Memphis is popular with out-of-state investors is the city's history of solid returns.

Aside from the standard BR/BA count and square footage, I always focus heavily on the listing pictures for any comps I pull in my area - finding a comp that's as close to your property's condition and finishes will give you the best apples-to-apples comparison possible.I also wanted to second @Tim Swierczek's input: nobody in Minnesota likes moving in the middle of winter.  

Yes, the work hours going towards this property count. 

They will likely count your potential rent as part of their analysis and should give you a good idea of how much you could "buy" based on your situation.

Basically if there is no "living room" and there are no comparable properties with similar square footage and bed/bath count in your area the property becomes difficult to comp or sell and lenders will not be able to use it as collateral for a loan Excellent point.

I understand this is a big problem in all inner cities in America.. had it happen to us to many times to count.