Leverage tends to adds risk, I always recommend having the worst case backed up by, long term job prospects, other liquid assets to cover losses, an/or the ability to take measured risk more than once to even out uncertainty.The richest individuals use leverage to their advantage all the time, but it should be used with care.Zach

I just had one of my tenants set one of my houses on fire, major damage but not a total loss.

I'm going to guess loss of income on some level.  

Downside is if you have more than a month in vacancy you lose that income and it will take time to recover that loss. 

We talked to a few builders and got quotes for $250+/sqft... nice :/ As well as some architects, to which we still have no clear vision. 

Getting the REPS status in order to truly leverage the benefits real estate paper losses offsetting your W2 earnings is something that takes very clear logging of approved activities proving your qualification every year.

I guess maybe, I could put less money down, so I could show a greater loss for this year?

Your profile mentions that you are a real estate agent - You want to have a conversation to see if you potentially are eligible to claim real estate professional status which would allow you to treat your rental losses as active instead of passive.Also have a conversation if you are required to make estimated tax payments since there is no withholding on your commissions.Lastly, your profile mentions you are in Florida which does not have a state income tax which opens you up to more options for choosing an accountant.

Discuss the Loss of Rents (aka Business Income) coverage with your agent.  

I guess the good news is I won't have to pay taxes bc LOSSES.