Call the planning or assessor department and get clarification. 

AFTER paying the public adjuster the claim settlement came out to almost $200k.

You don't have to complicate things by going to SA, unless there is just some crazy compelling reason, like you plan to move there soon.   

I'm wondering if we should get the Lowe's 3-year protection plan with it.

Offer some incentives like paying for their move or covering the security deposit and first months rent at their new place.

We have some short term debt we need to pay off at the end of July (300k).

Currently working as a lab scientist which relatively pays good but then again I'm not sure if I gotta start real estate after years of saving?

However the PM  (LSI) did not have a local office, but they had a payment plan via CVS Pharmacy where the tenant could pay cash at CVS, I know it sounds crazy.Also,  as I questioned the PM, the ledger changed.

Are you planning to do anything for cap ex or maintenance?

I know that I stand to make more money per renovation by just paying for the work, but I'm attracted to the idea of partnering with him for a few reasons.