Your situation is a little more complex than most people and I highly suggest you consult an attorney. 

Your suggestion would be considered a negative cash flow investment.

I’ve seen many investor clients use 1031 exchanges effectively.. just be sure to get specialized tax advice.

@Daniel Hartz...it would have been easier for suggestions if you have posted the address so some of us could see if there's more equity than what is being stated.  

What are the most effective ways to exit an investment? 

That would be my suggestion.

I'll definitely check out Set For Life by Scott Trench and The Total Money Makeover by Dave Ramsey for more financial insights.Watching BiggerPockets podcasts and networking with local investors are great suggestions.

I would love to hear about your strategies of which you all used to effectively scale.

As I suggested, if you believe your identity had been stolen, please file a police report and we can utilize that to help convince the carrier to make a full refund cancellation request.I'm very sorry you decided you didn't want the policy after all, and in fact, Obie covered some of the fees from your pro-rated cancellation so we could at least always put the customer first--even in this situation.

Here is some key information:Property recently hit the market and has 2 cash offers alreadyThe seller provided a pre-inspection report, which I shared with 2 different lenders, both think it may fail conventional financing due to potential structural and electrical issues (realtor thinks it could pass conventional)Seller has 100% equity but is behind on other payments (not sure of the urgency money is needed)This is my first attempt at an “investment” property so I’m new to thisI see 3 optionsMove forward with an offer using conventional loan pre-qualification-Not as attractive of an offer to the seller-Possibility that appraiser calls out structural/electrical issues that need to be fixed before closing, effectively causing financing to fail- Best terms and fewest loan fees for meUse a rehab style loan such as ChoiceRenovation-Even less attractive than a conventional offer to seller, but less risk of failed financing if appraiser calls out issues-Slightly worse fees and interest rates compared to conventional-Lenders tell me possibly up to 60-90 days closing in some cases, with red-tape for contractor requirements and draw schedules (sounds like the most hoops to jump through during rehab)Use a hard money lender-Most attractive loan option I can give to seller so I can compete-Much higher fees and interest rate for me-need to refinance into a conventional at the end of rehab (not familiar with seasoning periods but I think this is a factor as well)Which option would you do?