We actually tested the water as we wanted to verify the property was safe before renting it out to tenants. 

I would highly recommend you create a Market Report in PriceLabs to see how similar properties nearby are actually performing.

Got this from the sponsor - Real estate gain is 1231 - but there will also be recapture of depreciation which is ordinary income.With a few unknowns before the actual k-1 is released, it's hard to make any concrete decisions but was just wondering if I should sell some long-term held stock at fidelity to offset the gains

Comparing your post to my experience thus far I feel I am in for a fairly robotic loan experience.I have yet to see the actual loan agreement, but I have requested this and will report back when i get a copy.  

When my hardwood guys started sanding the smell was unbelievable, but we actually were able to seal the floors and get rid of the smell.  

wonder is STR actually rent in areas that are that prome to crime ?..

This implies the higher ratio areas actually produce lower cash flow over long holds.- it does not forecast rent growth or appreciation into the calculation.Those are not areas i desire to invest.  

Our business plan actually includes rehabbing distressed properties and conducting off-market transactions with owners currently occupying distressed properties using equity to reduce the out of pocket costs for the seller/buyer and to simplify the process.

When you are dealing with community banks, they actually like to see diversified ownership. 

And keep in mind that the rate on the 2nd lien will likely be 10-12% so depending on the cash flow it might not actually yield that much cash to you at closingMore importantly, it's just more debt so ultimately it sounds like you need an income-producing event to actually improve your situation and avoid some of the consequences that you mentioned