The term is subrogation - they pay you then can go after other responsible parties for reimbursement.If you get to a point in the process where there isn't much further movement, consider hiring a public adjuster who will represent your interests during the claim process.Also lastly - get ServPro under control.

Start a meetup with other interested parties and the invite your local hard money lenders to give a presentation.

They also say they carefully vet their clients, and don't allow parties or loud activities.

Non-recourse is hard enough to find, let alone new construction so you'll basically need to find a private, nearly private, party to fund such a loan.  

The house next door to me is almost an identical build without the third floor studio apartment and it just sold for $245,000.

Thank Kevin, the other parties want nothing to do with the rehab or maintaining  a long term rental but I do.

Loan amount can be 75% LTC, 18-24 month io, maybe mini perm 5 years, rate depends, points 1-2Experience of developer team, third party vendor, excess equity of sponsors to cover cost overruns, market demand, forecasted supply, Not sure, we don't really know enough

There are always options.I suggest that both parties are told of the situation asap.

The house has unit 1 on the entire first floor and unit 2 occupies the second and third floor. 

Your first deal is not going to be perfect but the most important part is getting started, continuing to learn, and working to grow your network.