And I guess there will be capital gain tax on any profit we make because we are selling before 1 year period even though the property value is below 250 k.     

You should be able to terminate the lease based on the fact that the unit is uninhabitable for an extended period of time. 

It's a cherished time machine of nostalgic memories of the very best of good times spent with inseparable friends during an unforgettable, seminal period of the tenant's life. 

In that time concentrate on continuing to educate yourself on this forum.

Continue educating yourself as much as you can, as I've been taught since I can remember "the lack of knowledge will always cost you money". 

So glad you've already plugged into the Bigger Pockets podcast - that was a huge source of education for me when I first started.

When people ask for a period of time to check for dealbreakers before EM is non refundable I tell them to do that’s before going under contract. 

Is it very likely I'll just be able to refinance at the end of this period?

What I've seen is a savvy investor would make an offer and go into an option period to lock down the property, sight unseen.

However, if they wanted to justify it, I'm sure the justification is that renters cause more problems than owners; renters tend to live then shorter periods of time and there are expenses when someone moves in/out such as extra trash pick-ups, programming them into an entry system, cleaning costs as the move in/out can be messy around the building, light damage to the building, scheduling of the freight elevator, cost of providing additional notices as now the tenant and owner need to receive copies, etc.