The agent recommended I talk with my current agency and get the renewal adjusted to reflect the property was occupied.I took the advice and reach out to Goosehead (my current agency).

Your gain and tax is determined by the net sales price ($240K ish) minus the adjust cost basis ( your purchase price plus capital improvements and minus depreciation).A bigger concern though would be that if you are wanting to do a 1031 exchange you probably should not refinance right before a sale. 

You can deduct real estate losses against W-2 income provided your modified adjusted gross income (MAGI) is under $150,000.

Then you can reinvest w/no 1031 stress.The step-up in basis provision adjusts the value, or “cost basis,” of an inherited asset (stocks, bonds, real estate, etc.) when it is passed on, after death.

It's a tough adjustment. 

Also make sure you and the suppliers are using the "same technical language"2: show up as much as possible when you're subcontractors are working get your tape measure out and check plumbing stub ups door openings Concrete form dimensions and square and really anything else that will cost to be adjusted or impact your project down the road.3: lastlyif a subcontractor does not meet the preset expectations for completion do not wait around hoping they'll get their act together, fire them pay them out move on.I hope this helps, good luck it's a lot of fun!

-I have opened a claim with my insurance company, the adjuster has not inspected the property yet.Any advice?

You can adjust this mindset of course as you get more experienced in it years later, but try to ignore the tax benefits as you're first starting out.

I then can create pivot tables to look at my spending and adjust accordingly.

While there were challenges, such as adjusting to the nonrefundable deposit requirement as a percentage of the purchase price, I remained steadfast in my vision.