If this is a franchise of some type, then it's usually guaranteed by the corporation, so if the tenant leaves, the corp takes over responsibility.It will take you 18 years to recover your cost of $700k.The property can appreciate all it wants, but unless you sell the property, or refi (which will probably kill your cash flow), that appreciation is just window dressing. 

Agreed with John and Ian.If you breakeven, then no changeIf you profit, you will be taxed on profitIf you take a loss, that loss can be deducted against other gains.

If you haven't filed your taxes strategically over the past 2 years and are showing a loss, it's probably not going to work out.- Higher rates.

Agreed value:  The insured and the Insurance company agree on the value of the Building in the event of a total loss.  

(And they do) If we get a ticket, we always pay it promptly, but then recover it from the Tenants. 

So I'd only buy it if you could swing the potential loss each month, you knew you were going to move there, and it fit into your long term vision. 

I believe that would translate into a loss of a portion of the deductible expenses on taxes.

.- but the total eviction was only 2k , not counting loss of rent. another eviction is the last thing I want.

Do you want full replacement cost if you had a total loss - would you rebuild in that case or walk away? 

Calculate the gain and tax implications of a sale.Do you have any passive loss carryforwards to offset the gain?