Still trying to figure out how to handle this one but I might have to cut my losses.

The seller mentions they will be taking a loss since they've clearly put a lot of money into rehabbing and restoring it.

Act of God.. no concessions.. but lots of food loss from fridges going out.. and barbecues.. local dry ice places were totally out.. 

My wife and I collectively gross over $150k/year, and we were recently informed by our CPA that due to our income we could not take advantage of any real estate tax write-off's as a result of Suspended Loss.

I've gotten 3 quality tenants this way: a bakery, a wood fire pizza food truck company, and a Mexican food truck company.

@Robert Moye you should be able to carry over the expenses/loss to offset a future year's income.  

Food for thought, thanks everyone.

Now my insurance company (USAA) is telling me that they can't cover it because no one know the cause of loss.

. $50k of unpaid cc's from a couple years ago reported as loss. 

Don't low ball the guy, but negotiate because if you don't negotiate then it'll be your loss!