Providing that the Reserve Study was competently produced and is current (should be current in California since that is the law), take a look at the 30-year funding plan paying close attention to the direction of the annual reserve contribution and whether there are any surprises such as future special assessments, bank loans, or large contribution jumps.

My duplex is assessed at $210k and property taxes are $4700/yr.

Get the coverage amount of the house, the amount you cover is the building itself NOT THE LISTING PRICE, there is a difference because you cannot insure the land it sits on (estimate 80% of the tax assessment the 20% is just a round number to assume land price)1.a Sometimes you would need a BOP policy which simply a policy that allows you to be covered for you and your tenant on the other side.

@Nikhil GargPersonally, I'd assess repair/replace options at time of future issue. 

I am trying to accomplish it by finding a competent, serious, mature lender who will objectively assess my financial profile and if I am approved, will fund the deal by closing.  

@Thadeous Larkin, I agree with most of your assessment, the possible holes I was thinking of was the fact that the video was made in 2014, and the law was not passed until 2017, and the property was being operated as a VR since 2016. 

HCAD will only give you an assessed value for tax purposes, so it should be much more than $121K in market value.Definitely do some more due diligence.

Again it’s hard to see from the photos to accurately assess the issue  so someone that can be there in person is the best way to resolve the issue.

I'll be attending my first local REIA meeting in the next week and hopefully I can get a few names of reliable GCs, flippers/rehabbers and lenders to help me assess what I may have here.And I've been careful to keep the address and names out of the conversations!

I've used all the sites zillow, reator, redfin etc.... and have assessed 90% of most if not all the properties based on my selective criteria.