The moisture issue and structural issue need to be addressed and you can do so before the insurance adjuster comes out.

Then you could choose if you want to move into that next house and sell your current home with some tax benefits.

Of course to maximize your tax benefit it needs to be sustainable over time. 

However, if you bought it and managed it as a market rate apartment, your experience would be very different.My point is, I can control how fast a unit turns simply by adjusting my asking rents.  

Hiring unlicensed and uninsured contractors is considered  an exclusion under most property insurance policies, meaning you could be giving up that benefit as well.

It will familiarize you with the basic terminology and benefits.

What are the limitations and benefits?

Be mindful of short-term capital gains tax, as profits from flips held for less than a year are taxed as ordinary income, and frequent flipping may result in self-employment taxes.While profits from flips do not qualify for 1031 exchanges (since flips are considered inventory, not investment properties), you can minimize your tax burden by deducting allowable expenses like renovation costs, loan interest, and holding expenses.If you're considering diversifying into rentals, explore opportunities to benefit from long-term tax advantages such as depreciation and lower long-term capital gains rates.

Realistically, there should be no benefit, and there are probably some disadvantages, of doing what you propose.

It’s easy to manipulate projected returns by making a few small adjustments in the underwriting and proforma.There is nothing guaranteed with any investment.A few additional comments:1.