Maybe go into the 12 unit with another investor 50/50 and save yourself the headaches and losses later?

In my wife's case it was a totally unnecessary expense - a loss.  

Interest rates are low, I could avoid constant closing costs with investment loans over and over, and the cash would feasibly make my purchase offers more attractive.

now we are trying to sell to other rehabbers and eat our loss early.  

Maria,What is covered and how the value of the damaged property is determined by the policy and the circumstances of the loss.  

Your General Contractor's loss should be on his insurance policy.

My next feasible option would be the BRRR strategy, but that is dangerous here as the entire area relies on one industry for its economic prosperity, coal.

Give tenant 2 notice the garage door must be kept closed and failure to comply will result in loss of use.. 

You did the first time around, only situation is you priced yourself to low.. you shouldn't continue the loss any longer than you have to you never know what costs may come down the road.. 

Also if you experienced the opposite - buying too early / failed attempts / big losses - please share!!