Recommend you spend some time researching your Austin market to learn how to evaluate potential rental purchases. 

Normally, if the policy values the loss on Replacement Cost, they will initially pay the loss at the Depreciated value, once the damaged area is rebuilt, then they pay the additional amount (up to the limit on the policy).   

Full Brick Detached Duplex in Optimist Park (4 Bd/2 Ba) 1610 sq feetPP: $565k                                                                                            DP: $28k                                                                                              Closing Costs: $0 ($15k seller credits)                                            *Used to cover CC & Buy Down RateRenovations & Furnishings (MTR/STR): $47kCash Invested: $75kARV: $675k-$700kJust a quick aside, I think right now is a great time for an investor, because there are a lot more people on the "side line".

Let her go, get the place treated so it is 100% roach-free, and then find a new renter.At the same time, I would have an attorney draw up a letter hammering the HOA for not stopping the roach problem because it is costing you money to continue treating and you are losing rent income.

Those numbers would be ok, but do you have money for the downpayment, closing costs, capital expenditures, 15k for reserves?

The short list of pros and cons would be that you'll make more from STR, but it will also require more work.MTR will be less work than STR, and potentially get you higher returns than LTR, but won't provide the stability of a long term lease. 

You can negotiate to have the seller cover up to 6% of the purchase price in your closing costs. 

The easiest way to view it with Househacking is; the more uncomfortable you are willing to be, the more you can potentially cashflow RIGHT NOW.  

Interview a few PM's, potentially the RE broker has suggestion?

If you have to change a water heater, which now costs around $2000 in Colorado Springs, that is a large unexpected expense that the owner has to pay for.