Your choice. 

I think I at least have a small capital loss on the deficit to principal but perhaps a larger capital loss if I can write off the agreed interest income that I didn't receive?? 

Tile surrounds rarely have to be replaced if just dirty, bathroom tile and fixtures clean very well unless abused, its usually an aesthetic choice.

Can find anything you want whether it's a larger project or a cosmetic job.

My first choice is ALWAYS separately metered utilities for each unit. 

A higher appraisal doesn’t help you get a larger loan.2) the appraisal is good for Only this purchase transaction, not for later refi’s.

Most lenders want some experience or a larger down pmt which they should.

Most experienced brokers and agents work on larger deals so they have to do less closings to make more money which frees up time to enjoy life more.

Some of the houses built by the titans of these local towns back in their heyday are AMAZING - some places in KS these houses are just rotting and it's SAD -- I can think of a few I've seen in Kinsley KS on some of my hunting trips -- in the right place in Wichita or KC or a larger metroplex you'd have people lining up to buy and rehab them.   

From here is where there are several choices:Stay put in the primary residence, a single family home, and purchase another property (SFR) to rent This is, slightly, my option of choice I will have a place to live free and clear, and wiggle room & safety in case anything should go wrong.Rent the primary residence, and finance another primary residence Sell the primary residence and split the equity for down payments on both a rental and primary residenceMy least favorite optionIt incurs the most debt and risk.