Unfortunately, moving into the unit by February isn't going to occur for me.

Did this occur after Hurricane Matthew (and the rainfall in the prior weeks) or was this an issue before such?

This expansion is already in the late innings, and if a downturn occurs, it could kill the return.  

You know, an older house like yours and an FHA loan are a accident waiting to happen.  

Sorry if you ended up here by accident, but thanks for helping me realize your in the wrong place.

If you think you will go FHA, Conventional, 203k, etc. and then Quit Claim the property, to a LLC, or a Land Trust you run the risk of the lender discovering a Title Transfer occurred and activating the "Acceleration Clause" or "Due on Sale Clause" that requires the loan to be paid in full, within 'x' number of days.

I have no evidence of this occurring, but it's a possibility. 

I stumbled into this world on accident by purchasing a completely outdated 1bd/1bath SFH (1935'ish) for 127k with the intent of holding on to it just for the write off.

But unfortunately, they are not for the vast majority of Investors.In regards to Residential Comps, I find that a lot of times that the Comps are incorrectly used or that the target property for purchase is incorrectly evaluated.I've used that type of situation to my advantage several times.This is a real life example that had occurred to me.I saw an ad for a Three Family building 2 doors down from my building which is a Four Family. 

A regular landlord-style policy won't cover anything if the carrier learns that the incident occurred during a short-term stay.