I would have my attorney send them a bill and request reimbursement.

Insurance reimbursed me for nearly $5,000 of the sewer issue so I was really out only $5,000.After that initial fiasco, we set aside all rent money and never paid for another repair out of pocket.

We had such a hard time finding contractors willing to deal with the extra hoops and time in getting paid that we paid for the repairs out of pocket and then submitted all needed paperwork to have it reimbursed to us (and then the mortgage company sold our mortgage MID-CLAIM, so it took over seven weeks to finally get our money back, so I can see why some contractors were like "no thanks" when we contacted them.)"

Insurance Loss proceeds can be some of the hardest to get reimbursed from your lender.

RogerDo't expect to receive financial reimbursements from any judgement!

So then you would get a cash out refinance for $75K, and let's say closing costs of $5K to keep numbers simple.The leftover $70K would pay off your loan of $48K, and reimburse you your $12K down payment, and reimburse your $10K of repairs.  

TI on the inside is generally about 35 a foot for new builds.So it might look something like this.National tenants 3-top:Land: Own it zero costConstruction Exterior: 125 a foot X 10,000 foot = 1,250,000Construction Interior: 35 a foot X 10,0000 ( Starbucks can be 50 a foot sometimes) = 350,000Rents say conservatively 25 a foot national tenants X 10,000 = 250,000 NOIThere will be base rent plus cam reimbursements and then backing down of some cap on cam with leakage and market vacancy. 

I cant speak to VA however in seattle I know probably 5-6 community banks who could do something like this:- 75% of ARV - after repair value, they will only lend up to a max of this on what they percieve your project will ultimately be worth- 90% LTC - loan to cost (acquisition + rehab cost) as they want you to have min 10% skin in the game so to speak  some banks are more conservative and they might say " we're a 75/80 lender," this means they are 75% ARV and 80% LTC or in order words they want you to have 20 cents skin in the game for every 80 cents they distribute to you during the construction or during the loan process- usually 1.5 to 2.0 points- usually 4.5 - 6.5% rate interest only for 12 months with extensions at cost - much cheaper than HML  as HML can range from 12-15% + 3-6 pts probably - they usually reimburse after satisfactory inspection (usually $125-175 bucks per inspection paid by you) - this is important since you have to have the cash to front the initial first phase of rehab and you will get "reimbursed," after its completed then on to the next phase.

You'll need to have enough to cover the down payment, closing costs, the monthly interest payments, and initial rehab funds (since they will only provide rehab reimbursements). 

And when the tenant pays you back for this charge you will make it a REIMBURSABLE BILLING.