I do not know how to start investigating this.

My state law says fraudulent claims are subject to a fine of up to $750 but they give no guidance on who to report it to, how to report it, or how it would be investigated and fined.

A police report has been filed and investigation is under way. 

Or you could investigate yourself, a newer structure is most likely brick veneer.

I am reaching out to get some insight on particular areas worth investigating and areas to stay away from.

This is a great place to learn and further investigate investing in real estate.

@Derek Mihlfeith, here are some things to consider.Option 1: Have you investigated if zoning will allow you to add an additional unit to your home?

Still crunching numbers, but from my preliminary calculations, I'll have some great cash flow.

I currently have 3 x 50 gallon tank heaters shared among 6 units - and I pay for water and electricity for the hot water heaters.I've recently been investigating tankless due to lower operating cost - but they have a higher upfront cost - and feedback from plumber is that cold winters (here in the midwest) can result in them struggling to keep up when the temperature drops below freezing. 

Sounds like you got some personal investigating to do on the IRS website.