I partnered with him and purchased my first property here in Columbus, OH.

I don't think you would actually be able to purchase and maintain the policy with $750,000 replacement cost if they think it would cost $1.3 million to rebuild. 

It burned to the ground a week after purchasing.

Purchased as an asset sale in October 2019 as a buy/hold investment.

@Nick Henry this also comes down to how much time you have available and how much effort you are able to put into purchasing a home or building and doing renovations and then finding quality residents to live and take care of your asset.

while I totally understand the frustration especially purchasing what was supposed to be a new and ready to go asset, but these things are pretty common so don't feel to discouraged. 

For a purchase generally application would be to review an ID, asset statements, and LLC docs if neccesary. 

He negotiated a $5k discount on the purchase price, and I moved forward with the deal.Fast forward to now - after seeing water in the basement, I hired a professional to inspect it, and the news was not great.

Are they going to be able to buy your proudly done flip.3) If you misjudge the market, do you know when to dump it.4) Can you put a spreadsheet together on your purchase costs, carrying costs, rehab costs, closing costs, selling costs, tax costs, contractors that don't show and delay your project etc. etc. etc.5) Is the return worth the risk.

Step 1: Ensure you can get financing (is it a cash purchase or will you need a loan).