My business partner found it, and we negotiated the deal with the owner of the property, who was about to lose it since the city had condemned it.

Yes, in some cases - and I would caution that such cases are rare - it could be a theft/casualty loss or an ordinary business loss.

We are both originally from there and her dad owns a tobacconist business on Broadway.

Quote from @Jordan Rodriguez: yes, the mortgage is under my llc and I'm the only sole proprietorCash the check in your business account  

Now, I've added wholesaling mobile homes to my business which is another way to build up cash as an investor. 

We don't know anything about your property, you, your business, your risks, what you care about, etc. 

You are taking a business risk by signing a contract with them. 

meant to say we have two financial regime right.the last 12 years are the cheap money regime, so buying real asset risk/reward is almost no brainer than holding cash, good to become borrower for asset that's appreciating (10%) lolbut in the last 12 months we moved to expensive money regime where holding cash itself is producing money with almost no risk, while doing business including real estate is having higher risk (compare to cheap money regime).

Keep in mind that there are two roles you play as a STR owner: that of a RE investor and that of a business owner.

Schedule E typically caters to rental income and certain types of passive income, while Schedule C is tailored for reporting profits and losses from a business or self-employment.