He didn't have much downside in terms of potential losses, and I could be somewhat passive and protected legally (he owned the building site etc. and took care of liability). 

All Contractors are subject to the lender’s determination that the contractors are qualified and experienced, have all appropriate credentials required by the state, are financially able to perform the duties necessary to complete the renovation work in a timely manner, and agree to indemnify the borrower for all property losses or damages caused by its employees or subcontractors.Multiple Specialized Contractors:Ø Since this is a limited repair/renovation program, no General Contractor is required.

In this case, am I still able to count the inspection fee as a capital loss, even though this expense occurred before I rented out my first property?

Although I care less about my financial loss, what upsets me is their manipulative conducts.

I am truly at a loss for words here. 

The agent will have access to the biggest platform to get the property sold though, the MLS, so forgoing even a cut rate agent will create more of a loss than the agent fees themselves. 

Their loss is our gain.

Laws are now passed that prevent you from renting to yourself and claiming all the losses.

@Brody Veilleux Loss harvesting in real estate allows you to offset capital gains by selling a property at a loss, which can also offset gains from stocks or other investments.

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.