It also has considerable risk involved as well. 

I need advice on the best allocation of my money and how to achieve this.

Now my lender are debating if I have to rebuild the structure completely with the insurance money.

They use this money to fund future FHA loans.

I just wish I had money because I know this is a great deal!"

This is where all the money is made and all the risk is.You will need to figure out debt financing, and that will be a huge driver of what you are able to do here. 

Only sell when you can put the money in an investment with a better rate of return, or if it moves you closer to your goals.The house is worth $385,000 and rents for $2,200.

Long term does not make much money, but less work.

How Technology Changed My Real Estate Business in the Last 25 Years25 years ago I decided to “formalize” by hard money / private money investments and start an investment fund and syndicate these note opportunities.

I was considering a 50/50 partnership minus any money invested into the intial purchase or for renovations.