It is going to need 250k in repairs, some is structural and some is environmental.

I know that one could theoretically just open up a new account with free transfer and use the new 0% APR as a cushion, but like I said - I am very credit-conscious.

Stream of consciousness about the deal and not a lot of time to post today.

These are not cheap on commercial.You may have environmental studies the assume the lender there are no environmental issues that would hurt the value of the property.

You need structural engineer to clear that building as to foundation and exterior walls or anything left.Fire restoration is a specialization, not just due to the smell and impossible cleaning of clothing, protective gear and the mess having possible environmental issues but you need to know what has to be cut out and what can be salvaged.If it were in my neighborhood it wouldn't be sitting there at a price like that.

Rent Roll (24 months) Last two years P&L financial statements Litigation (existing and pending if any) Floor plans Interior and Exterior photos Ages of roof, windows, heating systems and cooling systems Age of appliances Name, address, and telephone number of property manager and all vendors Last 12-months utility bills All service contracts Insurance policies and loss runs for last 5 years (if any) List of all personal property utilized by Seller in the operation of the Property that is currently located on the property Current and last 2 years property tax bills Lease agreements Known Zoning ordinances affecting the property Known Environmental issues affecting the property List of improvements and/or repairs done during ownership Seller’s list of any expenses not listed before.

Although to be fair, all the communications and documents from the lender to her and me were very hyper conscious about the BK and mentioned they could not collect because of it.

Reputable lenders may ask for a small deposit toward third party costs (appraisal, environmental, etc.) after delivering a term sheet and/or commitment but not generally something so amorphous as an "insurance fee" - those kind of costs, if necessary to close the deal, can typically handled at closing.  

@Matthew Louks, AIP claims to be "green and environmentally friendly".

A couple phone calls with the NYDepartment of Environmental Conservation may give you an extremely low-effort, hands off cash stream.