I could see in the case of a TRI or FOURplex could shoulder the weight of 1 unit.

@Chris Schuler and @Ethan Atkinson, the Falcon's loss was brutal...I couldn't watch sports center for a couple of weeks after the game.

Still trying to figure out how to handle this one but I might have to cut my losses.

The seller mentions they will be taking a loss since they've clearly put a lot of money into rehabbing and restoring it.

Act of God.. no concessions.. but lots of food loss from fridges going out.. and barbecues.. local dry ice places were totally out.. 

My wife and I collectively gross over $150k/year, and we were recently informed by our CPA that due to our income we could not take advantage of any real estate tax write-off's as a result of Suspended Loss.

A HELOC should be explored in addition to a cashout, lots of variables here as to what the best route is.I wouldn't put much weight into the neighbors, this is common and as investors we build thicker skin as we go forward via pesky neighbors and tenants. =)I would recommend your plan involve you not paying MI on your new purchase, so coming in with 20% down + would be my advice.

@Robert Moye you should be able to carry over the expenses/loss to offset a future year's income.  

Now my insurance company (USAA) is telling me that they can't cover it because no one know the cause of loss.

. $50k of unpaid cc's from a couple years ago reported as loss.