However, finding this thread is an even bigger sigh of relief for me, as it shows that I'm definitely not missing out on anything by not giving this guy my hard earned money.

If indeed a loss is taken on this which it sounds like is a fair possibility then if the agent was representing you the agents E and O will/could kick in and that's where you might get some financial relief.

 You may be able to secure higher leverage financing through alternative lenders than a traditional bank (not always the case) and this may help advance your objective of reducing the down payment/cash requirement but that may only be temporary relief as you will likely pay more over the course of the loan because of higher rates and fees.

This benefit allows the owner’s estate or heirs to receive the property at a new, higher basis—reducing capital gains taxes if they choose to sell the property after inheriting it.In short, partial disposition allows tax deductions for retired property components during ownership, while the death step-up basis resets the property’s depreciated value, providing tax relief for heirs.

Does anyone know of an income relief program in North Carolina for property owners that have short term rentals that are not renting due to hurricane impact to an area?

Using a Heloc utilizes the equity that is sitting dormant, it provides tax relief (once again check with your tax professional) as it is interest income, you can typically get a reasonable rate andlastly there is no out of pocket money.

but I’m starting to reconsider .Eating the Capital Gains will hurt a bit but we can apply the profit made towards some tax debt as well and then apply more $ to our primary condo out here and get relief of the PMI.OR do a 1031 .However, most people say an intermediary is necessary .I need to do research on how much someone charged for a 1031 .

The trustee was able to negotiate with us and allowed us relief to sell the property because there was not profit being had, they owed around 70K and we were selling for 25K.

A debt relief company is probably your best and most cost effective option. 

The one's with variable debt get a bit of relief, but the reality is that it is so minute.