But we dont build on stilts around my area                                                      I've only done that once (more like a pole house actually), and it adds a lot more moving parts.

But how many of us are actually prepared for the unexpected?

Based on the information provided, you can only claim a capital loss when you actually sell or dispose of your REIT investment, not when the REIT simply returns a portion of your principal.

If they actually use a reputable title company I'd do it but if not, I won't trust them.

What would you do in my shoes I don’t invest there so take this with a slight grain of salt but I’ve heard multiple stories of basically this exact scenario someone getting offered a big payday for something in Cumberland, rejecting it & always for some reason (house burned down, block got worse, sheetz decided they actually didn’t want someone’s land for a car wash after all) always selling for like 10-20k and regretting not selling. 

But I think any experienced investor would agree that if you aren't doing value-add when it comes to real estate investing, you aren't actually investing.

So much depends on your intended move out date since you said you're moving out faster than expected.

Do you know your actual amount of taxable profit on the flip?

This may sound harsh, but I would actually put this on the tenant to get his rent payment back.

I hope no one is using this to actually purchase property subject to.