A sole proprietor is a business, without an entity.An LLC can be especially useful in certain circumstance, such as when partnering on deals.

Now if you do not have anywhere else to go because of your circumstances and that is the real reason you are fighting to stay in the property then that is different because you are fighting for your survival and in various ways we all can understand that.However, if you are fighting this "on principal" then it should be even easier for you.

I too, started under similar circumstances, my wife, who was then my girlfriend "encouraged" me to purchase my first home in 2011, best decision I've ever made and we haven't look back since.

Is there a wiggle room for accelerated depreciation for special circumstances such as this?

I have bought properties I intended to live in but decided to rent out instead, in my opinion there is nothing wrong with this, peoples circumstances change all the time.

But for the condition it was in and what it needs vs. price they wanted and my own circumstances,  not the best move for me.

In your circumstance (congrats btw), if you wait too long to cash out your available equity, that equity could go south just like the investment properties that you're hoping will be cheaper by the time you buy.ie. 

Hey @Mike Trzaska Driving for dollars is a great way to find properties that are clearly neglected.

The tenant must make a rent payment as close to the actual rent as their circumstances allow.  

There are only a few circumstances where a cash offer is more beneficial to a seller.