There's a similar property that just went under contract and there's potential to make a good hunk of change with the one I'm looking at, but didn't know if anyone had experience with a ROW preventing a sale or  being able to get a good market value for it.Also the adjacent lot the ROW is shared with does not appear to be inhabited.

Most of the houses we sell are in need of substantial repairs and are inhabitable "as is". 

As an example, a house that requires $50K in structural work to be inhabitable might be so difficult for other buyers to purchase that a smart investor can pick up that property for much, much less than $50K below market value (and keep the spread as profit).Now, you might wonder why a homeowner (or another investor) wouldn't come in and pay closer to market value, spend $50K on structural repairs and then have some equity in the house.

In a standalone rental property that isn't inhabited by the landlord, it's much much harder to kick people out. 

Thankfully everyone got out unharmed, but it looks like the house will need a gut and is inhabitable.

So even though you got the church for no cost, there is no money in making it inhabitable?

App_...you may be required to credit or refund the tenant for any time that they cannot inhabit the premises.2. 

So I bought an inhabited duplex with FHA financing intending to get both sides to leave so I could renovate both sides.

You are 100% willing to let her out of any lease and return her full deposit...but she needs to be out RIGHT NOW....... the house is not safe for her to stay in and you cant fix the issue while it is inhabited.

To answer you question "Loss of Rents" coverage will kick in when you suffer a covered claim that makes the property Inhabitable.