The first misconception is that you can declare a property headed onto the market only S8 eligible, refusing to consider traditional applicants.

I looked at their booking calendar one time and thought it was pretty empty.I guess you don't know until you try...and probably depends on if you want high occupancy or high rate?

There is a not so inexpensive fee - anywhere from 5k to 100k depending on the program and they take a % of each deal. 

depending on how backed up the county is it can e take a few months for court date. in essex county it took my mother in law about 8 months or so for the full process. she had an attorney, not sure if that sped anything up

Taxes depend on the gains from the insurance payout and sale relative to your adjusted basis.

I might have to anti-SLAPP and even sue them back for malicious prosecution or malicious use of process depending on what happens in the future.

This $100,000 would be taxed at the applicable capital gains tax rate (0%–20% federally, depending on income) and subject to depreciation recapture at a maximum rate of 25%.

Cash flow is crucial, especially if you depend on it for your monthly income.Selling the property for $170k, which is above its market value of $120k, might seem like a good deal initially.

Depending on what you are trying to achieve, there may be some other lenders I could suggest. 

It depends on who you're hiring but that seems fairly standard.