I'd be digging in to WHY the owner is cutting his losses rather than finishing the rehab.

Potential pros are you can do very well and invest in a secured investment, but cons as with any investment include risk of loss.

We had our first 6-figure deal but also had a our biggest loss on a flip too - 2020 has been a roller coaster ride for sure!

Hi, we bought an investment property this year and will have passive losses.

Its pretty much necessary for tax purposes to cleanly assign the profit/losses (N.B. 

Your losses can be amplified very quickly.Whatever you choose, make sure you see the downside risk very clearly and hedge against it.Hope this helped as a step one.

Do be sure, however, that if your accountant is deducting passive losses from the rentals (if you have these, hopefully not) against your husbands income that you solidly qualify as a Real Estate Professional.

This area has been hit with two landslides in the past 20 years that have caused property damage and loss of life. 

And you admit you should have no problem renting the place again.The only loss is the "pain" of showing it and vetting new tenants. 

Even more so considering that there is real risk in that holding period, real skill needed to manage it and real risk that it goes up, real loss of any appreciation beyond the RTO price as well as still being able to lose if you bought in an already appreciated market that could fall which is the reason RTO is becoming more populor (higher price to LTV in many markets).