Would that lower our tax liability from other income we receive or no because this is purely RE and not an operating business?

You'll want to take a spreadsheet and create a list of all properties you've purchased...particularly in the last 36 months and include the address, lender, purchase date, either rent you receive or disposition date, how much you sold it for, how much you rehabbed it, etc.

While with Jeff for 11 months, we have received a total of 2 very small owner distributions with the first one going into someone else's account. 

  $128 would be lowest monthly cash flow I've received (currently have 5 rentals), but I'm focusing on the $30,000+ in equity in this deal. 

Quote from @Jenn Kabahit: We already received a quote and it’s 325.

If you want to look at total expenses over the years, you need to look at total income received as well with your potential sale price. 

I think my attorney gave me bad advice and we did not foreclose on which would have been best because I would have at least received a judgment on the buyer. 

I have received other quotes for insurance and they were able to go with a replacement cost closer to, but still above, the property value (thus, way under the $2M evaluation).

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