I recently had a total loss fire in one of my rental properties. Unfortunately, it was an intentional fire set by a tenant getting evicted. Fortunately everyone was ok and the insurance company has been no problem at all giving a full pay out which is valued at the purchase price in 2020.
The pay out is not enough to repair/rebuild as the house was built in the 1920s and would not make sense in the location it is in. I'm wanting to wash my hands of the property and get out with the most capital intact. I'm looking to see what my options are for this type of situation.
What options do I have to exit this investment? Can I just sell the property as is? Is it my responsibility to do a demolition/clean up then sell the land? Looking forward to what advice everyone might have.
Bonus question: what kind of impact does this have on my taxes and how do I file this?
