Buyer may elect to treat this Contract as canceled, in which case all Earnest Money received hereunder will be returned to Buyer and Buyer may recover such damages as may be proper.

@Mohammed Islam, The claim of loss due to the tenant moving out for the sale COULD absolutely apply to the situation.

Can you take the loss without completely ruining your finances?

@Gregory Wilson can you be more clear about what you mean about a loss?

What happens if you lose on it, you now have an additional liability, not just a loss of money.Are you planning on keeping the current property or exchanging it (1031) into something else?

Keep in mind the more you write off the less money you will show as you net.If you have (2) full years and depending on how the accountant files your taxes you will have a schedule C more than likely or another schedule that shows profit and loss.

You could very easily find yourself broke and homeless with no way to recover. 

They are now selling resulting in a 100% loss for investors. 

You will have to gather more accurate operating costs (vacancy loss, taxes, utilities, insurance, mgmt fees, maintenance, HOA) to best determine potential future performance.

Of course we can cut our losses and switch.