Very happy to see that mental models are being overcome and creative solutions to barriers to entry are becoming systematized to help those who are a little weary have the same opportunities to be involved in the real estate world. 

From my Fair housing attorney:“Did you see that Saint Louis Park passed an ordinance that anyone buying a property and raising rents or giving notices that have an adverse effect on affordable rents – will have to pay cost and relocation of up to $4500 per tenant?”

If you are risk adverse real estate, (especially out of state) is not for you.James Wise, Real Estate 

To answer Brian's question, I believe you just want to cut your losses and recover some of your cash and possibly pay back borrowed money.Assuming my hunch is correct, you just claim your losses, and there is no tax issue.If you do have a taxable gain after selling this property, you will not have adverse tax consequences, either.

However, I will say that most successful investors I've read about and talked with, will only invest in areas they are familiar with, or have very efficient systems in place to overcome the distance. 

You can overcome any mistake or problem with a tenant or a property but you can't move the house if you buy in a bad area.

Also what adversity did you face as you started investing.  

This too can be overcome with swaps that weekly “mark to market”.

A quick google search says adverse possession in FL takes seven years. 

I have found a property for $295k in a nice neighborhood with an ARV of $385k the seller acquired through adverse possession.