Live in the 'worst' unit, renovate it and then move into the next unit and repeat.

The above is the quickest strategy but the most economical might be this:  The residential property can be with a regular Fannie of Freddy loan, just call it a home with a guest house, worst case is they consider it a duplex..

With a single piece of property, given time and proper management, you can build value like an avalanche thundering down a mountain.

Just think of worst case scenario- it will save you a lot of money if something happened. 

With no contract to read its not fair to assume the worst on the OP.- Interacting with subs and managing subs are two different things.

As Dan said rent your unit out immediately, move into the worst remaining unit, and offer the other storm damaged unit for rent, letting prospective tenants know that the unit will have new floors when they move in.

I would definitely let the lease go month to month as soon as you can though for if worst case happens it will give you more leverage as a landlord.

@Ashish Acharya I have lived in the worst 3 states, none of them had a State 529 tax Deduction... wow that is something...deducting it like an IRA.

Worst case scenario, you don't win the auction. $6-$8k seems like a pretty small repair estimate when simply looking online.

he sounds like the worst agent in California haha.