In a standalone rental property that isn't inhabited by the landlord, it's much much harder to kick people out. 

Thankfully everyone got out unharmed, but it looks like the house will need a gut and is inhabitable.

So even though you got the church for no cost, there is no money in making it inhabitable?

App_...you may be required to credit or refund the tenant for any time that they cannot inhabit the premises.2. 

So I bought an inhabited duplex with FHA financing intending to get both sides to leave so I could renovate both sides.

You are 100% willing to let her out of any lease and return her full deposit...but she needs to be out RIGHT NOW....... the house is not safe for her to stay in and you cant fix the issue while it is inhabited.

To answer you question "Loss of Rents" coverage will kick in when you suffer a covered claim that makes the property Inhabitable. 

Built in 1980's, some deferred maintenance, have not done inspection, I expect surprises--but since it is inhabitable I do not plan to make any value add changes until the bridge loan has been paid off. 

With respect to the rental - if it is inhabitable, advertise it for rent before you do any repairs or maintenance.

Of course, the condition may not be top notch, but all look inhabitable while you work on them.