When speaking to the listing agent, she could not tell me any information on his financing situation and only stated that the seller knew he would be selling his home at a loss.

The rental income loss cannot be included as income for last year (2018).   

I want to help her out but also want to avoid significant financial loss.

I learned a lot and maybe will come back to STRs when I don't have to overpay to get in, but I'm selling it right now and not looking back while I have the opportunity to offset my cap gains with all our losses.

@Carlos MartinezAlso ask for loss runs, if there have been any claims for the past five years.

When the bad outcome inevitably occurs you have the scale necessary to absorb the loss.

Should I consider a 1031 after one year to “cut my losses”?

Break-even or small monthly loss is 100% achievable here in good proximity to the parks and attractions.Please feel free to message me I can direct you to a few opportunities that may allign with what you're trying to do!

Dropping the price further would result in  more loss of at least $50,000 due to agent fees.Questions:Given my current situation, would you recommend selling the property, including offering seller financing, or keeping it as a long-term rental for a few years and then considering selling?

As an investor we can help alleviate and give good service to those after loss and thus one less thing to worry of.