The cumbersome aspect that you can expect here is that you've already begun demos and reconstruction, what that means on an appraisal is that you "might" have devalued the property from where you believe it is.

Re construction is when you're renovating more than 50% of the home  creating basically a new product and then it's subject to today's code. 

And Milwaukee is seeing a major reconstruction of the freeway system and the downtown area, not to mention the Majors initiative to grow the pupulation of the city to a million people, which would bring the metro area to over 2 million.  

-Z-1301-Repair-and-Reconstruction-of-Nonconforming-Structures.pdf

If none of that works, see if the bank will accept a Liability policy until you are ready to start the reconstruction.

ARV = $230kPurchase = $65kRepair = $60k - $100k depending on if it has to be reconstructed to meet code. 

I've never worked directly for or with a contracting company, but have been involved in multiple reconstruction/rehab projects.

Understandably, any contractor in the reconstruction/remodeling business is going to be busy for the foreseeable future here in the BR Area.

The following items were neglected in order to save money, as examples: our hedges all had extreme white fly damage, wood rot due to water damage and putting off painting, our pool restrooms have massive holes in the roofs and we are in the process of reconstructing 2 of them.

The appraisal shows Reconstructed Income and Expense for the income approach of the appraisal.