If you have a partnership structure or some other facts and circumstances around the loan that indicate you are extending it in the capacity of a trade or business, it will be considered ordinary income.Keep in mind that the tax rates will not differ between ordinary and passive income unless you sell the loan for a gain/loss.

So for most people, most circumstances, most situations, realistically your cash and rehab is held up for 2+ years. 

Feels a bit like a Hail Mary given the circumstances though, and I am wondering if it makes the most sense to just lower the price should it come to that if nothing happens in the next couple of weeks.Thanks again for your input!

Just a really bad set of circumstances for the OP.

When financing a large-scale fix-and-flip project, assessing and managing risk is crucial for success.Risk Management StrategiesContingency Budgeting:Set aside a contingency fund (typically 10-20% of renovation costs) for unexpected expenses.Time Management:Develop a detailed project timeline to keep renovations on track and avoid extended holding costs.Partnerships:Collaborate with experienced contractors and real estate agents to mitigate risks associated with repairs and market positioning.Insurance:Obtain comprehensive insurance coverage, including builder’s risk insurance and general liability insurance, to protect against unforeseen events.Exit Strategy:Always have an exit strategy.

Although the $55,000 renovation went as planned, dealing with unforeseen issues, such as older plumbing, required adjustments.

Although the $55,000 renovation went as planned, dealing with unforeseen issues, such as older plumbing, required adjustments.

We don’t know all the circumstances, BUT, from the small amount of information in the OP, it does seem like the OP believes that to earn a commission the broker/agent needs to represent the buyer all the way through closing and that if the buyer terminates agreement before closing the agent no longer needs to be paid.  

Or, if possible, move into a different property, hold onto this property for another 2 years or so, (your circumstances have now changed) and you'd like to sell your investment property, 1031 all proceeds into a "like-kind" property and benefit from the 1031 tax deferral. 

It is rural and 30 minutes outside of a major city, however, it does have a 20x30 shop that a tenant under the right circumstances might find desirable.