.- Taxes: While the 10% penalty is waived, the withdrawn amount will still be subject to regular income taxes.This can be a useful way to access funds for a home purchase, but keep in mind the tax implications and the potential impact on your retirement savings.

But a lot of bank employees, real estate agents and regular people don't know it or they just don't believe it.

Yes I spend time in Florida on a regular basis. 

I have many questions that need answers so I will likely be a regular here in this chat.

Trying to read between the lines it sounds like you have a regular owner occupied homeowners policy in place on a rental property. 

Our mortgage brokerage works with real estate investors all across the country who face these same decisions regularly.

Transitioning from builder’s risk to a regular property insurance policy might be the way to go if the sale takes longer than expected.

It has since been replaced with a regular shingled roof because of the noise.

Maybe you could extend the closings with some additional earnest money (even if you release it) and buy the time so you can simply do a regular 1031 exchange.  

If you plan to manage remotely, then find a good PM or have a trusted team that can inspect your property regularly - and be ready to pay them.