I’d rather sell but I realize not much chance of a sale here in this tiny town especially at that price.

Be prepared to pay your electrician to come out over and over as the inspectors keep finding little tiny issues, and their inspection won't be limited to just your fire damage area, so you'll end up fixing any electrical issues all over the place.

Other is a 1bed, large living room, large dining room, galley kitchen, TINY bedroom and small bath with shower stall.

I have done a flip in my market in the past, so I have a tiny bit of experience with it.  

These are things like..walls falling apart, zero parking, tiny kitchen, etc...neighborhood comparably of course.3.

I'm making a tiny bit more money now but really only about 100-150 dollars more monthly.

If you have it properly staged you could show a tiny bedroom as an office, making the buyer miss the size of the space all together. 

There are many types of roaches and some are more difficult to get rid of than others, like the tiny German roaches.

Prefab/tiny home is definitely not a bad idea, keep the costs down and the cashflow up if you are planning to live in it.

Split between partners to me that's a tiny margin for the substantial risk you are taking.