Your carrying costs include mortgage, property tax, insurance, electricity, water, garbage, HVAC since it's summer and any HOA if applicable.Get a Prelim Title report $50 to $60 in most places.

You can still get decent cash flow, and you are in stable neighborhoods that have some potential to appreciate.

Is there any hope at all that their liability insurance can help with this?

@Fernando PenaIf the tenant intentionally or willfully damaged your place, your insurance might cover some of it.

We bank and have insurance with USAA.

I was reading an article ( https://www.biggerpockets.com/renewsblog/work-with... ) about delayed financing where it mentions "When you buy the house, you can put the rehab, your insurance, and any other hard costs like this on the HUD. 

@James CallHi James, your profile says you are an insurance agent.

@DJ Cummins, if you're talking about taxes and insurance escrows then no you cannot use 1031 proceeds for that. 

The rebuild insurance is $84/month at $170k.

In working to get insurance, I found out the home was not insurable and I wouldn’t be able to complete the repairs in under 30 days to get it insured because it is currently tenant occupied until the end of the lease.I notified the wholesaler that there are some issues here and I would either need to buy it with cash (as intended) and leave it uninsured while hustling to do the roof, AC, and electric panel in under 30 days (a little tough to do with the permitting of a roof in Brevard county, FL right now).He said he’d check to see if any other buyers were interested and would “consider” refunding the assignment fee.