First flip help!

[Robin Hall]

I could really use some guidance on a design issue with my first flip.  I have a house that I am getting construction bids on tomorrow so I had my realtor friend stop by today to help me craft my scope of work.  She pointed out this design problem in the living room: there was a wood burning stove in the corner of the living room at one point which has since been removed but the flue is still there sticking out of the wall and the whole corner is tiled.  I want to paint the tile white and leave it alone but that doesn't help me with the fireplace flue that is still sticking out of the wall.  Any thoughts on what I can do to remove the flue and fill the gap where it use to be without having to tear out all the tile?  The house will likely sell for around $80k and is in a working class neighborhood if that helps with any guidance.  There are a couple of pictures to show what I'm talking about below.  Thanks!

-Robin