Congrats on turning that boutique motel into a success!

I have also been doing quite a bit of research on Loan's, tax consequences etc., and am working towards being a expert in this niche.  

Here is what I would do:I would still close on the property but send a letter to the sellers broker and the seller along the lines of below (note I would have an attorney write it and send it):It has been brought to our attention there was a $15,000 insurance claim on the property.

They were simply the king of online bookstores. 

That’s fine down the line, but for your first property, I’d lean toward familiarity.2.

I highly doubt Paces team does anything more than sell you his system.. no way they are vetting potential borrowers of small EM deposits  :)  many beginning wholesalers do wholesaling because they have no money or credit or credit is tarnished etc.. this is ultra high risk en devour to be loaning money like this to people you are meeting on line..

Use the magnifying glass on Puerto Rico.  

Depending on your current rate or if the current loan is short term or long term.

You can use this property to hedge any others that you add that may only cover themselves, or require supplement until they are paid off.HOWEVER, if you have decided that your goal is to use Real Estate as a stepping stone to build wealth by upgrading the property you hold each time (condo to house, house to 4-plex, 4-plex to 8 unit, etc) then I think you are right to sell now while you think the property is at the top of it's appreciation.It will be hard for anyone on BP to tell you what to do as we don't know your goal.You are right. 

It is a matter of how bottom-line-oriented they are and knowing how to file insurance claims.