If the home does not have any existing liens outside of the mortgage that is being replaced, I don't see why owner occupants would be unable to buy.

Then ask what it's worth for them.There's no time for them to accrue any meaningful amount in that time span if charging purely interest. 

Updated the kitchen and bathrooms, pulled out old carpet and replaced with engineered hardwoods (upstairs and basement), repainted the entire interior of the house, new lighting throughout most of the house.

Meaning, the big ticket items that I am replacing are in complete disarray. 

When you rented to that tenant three years ago, a water heater may have costed $900 to replace and today it is $1100 (example only).

If your QI doesn't get it ask them what the reinvestment requirements are - purchase at least as much as your net sale and use all of the proceeds in the replacement purchases - nothing in there about number of properties at all. 

I don’t believe you need to allocate more for a STR compared to a LTR, but should consider the life of the property and what expensive items might need to be replaced/age of these items such as the furnace, A/C, roof, water heater etc.

So long story short, in the past 1.5 years, we have renovated 9 of the 24 units, installed new roofs on 3 of the 6 buildings (this was known at purchase), and replaced 8 HVAC systems. 

Has anyone insured a rental property for only loss of the building without replacement?

Our understanding is that it has a single-bottom cylinder and we expected to need to make some expensive repairs or simply replace it, but we weren't sure just how soon.