I would agree with Aaron, I think your best bet is to find a flipper who has done fire damaged properties in the past and has experience with them.

One of my colleagues who has been doing this 25 years has picked up a grand total of three properties this way.

It would be helpful if I could pick your brain to understand the total cost of owning and operating this kind of business. 

750sq ft total?  

At which point I would have to come out of pocket ($18k additional for $80k total renovation) to succeed in renovating the property to its full appraisal potential. 

A $110k prop in one market could be a solid B/B+ (Birmingham) and be a total nightmare in another market (good luck finding anything decent for that price in Seattle, for example). 

There may be some other numbers I am forgetting but all in to buy a $100,000 property you'll want about $35,000 total in your bank, assuming the 20% down payment. 

Following is a description from the realtor selling the house: This is actually 2 totally separate, complete homes with one common wall!!!

A duplex with the same total size, beds, and baths as a SFR in similar condition in the same area is going to appraise at about the same value as the duplex.

I do plan on keeping the acreage regardless of what I decide.Some of the numbers:  I bought the house and acreage for a total of $125,500.I currently have an ARM which the rate is at 4.125%.