I was unfortunately caught up in this scam and I hope that I can help others avoid the loss of money and the unfortunately situation that I was in.I lost $5,000.  

Knowing exactly what’s happening with the duplex—rents, repairs, tenant feedback—can help you catch issues early and save time, stress, and money in the long run.

This is dependent on your personal situation and strategy.

You better check out your legal situation, rights and obligations before you make a very expensive mistake!

Has anyone else encountered a situation like this?

I know I already mentioned this, but @Mordy Chaimovitz...If you can get by with lower cash flow and invest for the long-term generational wealth (aka appreciation) in nice neighborhoods, that is the way to go, but it's tough to get by at times -- at least it is for me.Just know everyone's situation is different, and you should do what is best for your specific circumstances!

Bit of a wild situation here, at least to me and my lender; maybe it is more common than we think, not sure honestly.

It seems like the best fit for your situation—less time commitment, steady growth, and manageable risk.

And which of those is most beneficial given my situation?" 

So if your replacement cost valuation on the policy is not high enough to actually rebuild the property (oftentimes this is the situation when contractors are charging premiums because they are so busy with other losses), and unless you are personally willing to pay the shortfall to rebuild the property, the insurer will only pay you the depreciated (ACV) for your loss.