I started a small company,  after suffering major losses in 2009.

You may not make it there depending upon your purchase price etc.All of the expenses are listed out on the partnership return and then the profit/loss is allocated based upon ownership percentage or any other agreement.You definitely need someone qualified, does not have to be a CPA, could be an Enrolled Agent or an attorney.

My $6/mo is to cover me and any workers, plus loss of income due to issues causing uninhabitability. 

You also need to find out what losses are covered:     - Is the Coverage "Special Form" (better) or is it "Named Perils". 

It seems this property is not financially feasible for them. 

You might try a new contract with your business partner with a "without the possibility of loss clause.

The is feasible if the property appraised for at least $245K.

The corp profit from the interest I pay it will be reduced as i take a salary from the corp large enough to and use my carry forward losses in my personal name to reduce my corp tax to zero.

In essence I feel like the loss of cashflow is worth the much faster equity I'm building in the property. 

I was told the house would be treated as inventory and reported on 1125A but I shouldn't there be a greater break down of cost to show the profit & loss?