Of course it is always a balance between rate and occupancy.I probably will never do it , but often dreamed at one time about buying a small hotel. 

@Carl Rowles get someone over there to document the damages with a ton of pics AND a narrated video - you may need this for any insurance claim.Regarding your insurance, many of the residential insurers: Allstate, Farmers, State Farm, etc., have a clause that makes your policy invalid if the property is vacant for more than 30 days.- Check with your insurance agent ASAP.You'll need to file a claim and get a claim number.Try to get an insurance adjustor in ASAP, so you can start pumping water out, removing all water damaged drywall and get dehumidifiers in. - Note: the insurance company's adjustor will try to minimize your claim amount.

Prepare for additional costs: If you’re adding units, you’ll likely need to address the water meter situation and possibly upgrade utilities.

If you cant find one here try joining the Metro Detroit REI group its a ton of good ones there. 

STR management is 20-25% (I would recommend self managing or getting a VA), since income is higher you could probably get away with 5% for maintenance / cap ex but remember you need to cover utilities and cleaning for these units which drives up costs.

And have you thought about building back utilities?

Start with a standard offer, and write a contingency into it for electricity, all the below ground utilities, and then work your way to zoning, permitting etc.

In the end, I added a ton of value by turning a headache into a dream home.

They also have a TON of amazing educational content which is helpful since I'm working to figure out how to tap into my IRA to purchase more real estate.They’re also great if you’re into diversifying - like with real estate or other alternative investments.

Then I would speak with a land surveyor or civil engineer to get a sense of what it would take to obtain all the entitlements and bring in the utilities, etc.