File a formal claim,  Then have your insurance company produce to you the section of your policy that excludes damages preexisting prior to acquisition.

Projected operating expenses will be $2,108 (excluding financing costs) monthly. 

The remainder of the gain will be excluded under section 121. 

Basements are sometimes included and sometimes excluded.

I was also told that my umbrella policy would not cover anything that the homeowner's insurance excluded. 

This is not counting the cost to acquire the property (excluding the price) and the cost to fix up the property before selling it.

State taxes should have a minimal effect on evaluation if you live in CA (excluding property tax) because my understanding of how the income would be taxed is (state income was generated in taxes first if it is a higher rate than CA no further tax, if it is lower rate CA takes what you paid the other state into account and taxes the rest of the way up to their normal rate)  Hopefully that made a bit of sense it is difficult to explain in text format.

The basis is equal to the appraised value done by the estate.If you sold the properties shortly after you inherited it - you likely will not have any gain and as a result no tax.You are not required to acquire an additional property to defer/exclude the tax.

We are primarily hoping to get new homes but will not exclude used homes that are in good shapes or new buyers who will get the appearance proper in our park.  

If you lived there in the last 5 years, you may be able to exclude some or all of your capital gains.