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I would engage insurance again - if you can keep the out of pocket costs to a minimum, it will help preserve your ROI. Would you have to pay another deductible for the tornado damage?
I would sell it as is considering it was a terrible investment for you. You will continue losing money
You've described a very painful part of real estate - a costly and time-consuming unexpected turn of events. It's not so easy to sell an as-is property, especially if you can't get a CO. (We're on our 5th as-is contract).
Right now your best bet is to work with the bank and insurance company to see how you can be supported. If you're in tornado alley, then fix and sell asap. Otherwise, you'll be dealing with this scenario repeatedly... and next time, tenants may be impacted.