You will not get paid anywhere near what you can make on the rent and food is free.  

Youd have to account for the rent you paid yourself as income to the RE, so unless youre operating the RE at a loss I see no tax advantage.

The seller is instead threatening to "not close" unless I sign a statement saying that the "work was completed to my satisfaction", which it has not been, so I am not willing to waive that right, as I estimate the outstanding loss to me to be ~$4,000.

These days, shipping facilities are happy to have you arrange packages to pick up at their nearest location, or he could have required it be signed for, in order to avoid potential loss.  

Also, I know I've read up on blogs and heard in podcast about being sensitive for mailing to those who may have had a loss recently, ANY SUGGESTIONS for KEYWORDS that can help me trigger some good articles for a newbie as I push my first campaign out??

Obviously the IRS is looking at income and gains/losses.

But as most people have stated in this forum, it's better to get a bad tenant out quickly and cut your losses than to delay it.  

If the seller has no more problems(loss of motivation) for you solve SOMETIMES it's best to agree to disagree.  

No vacancy loss for over 5 years unless we had a eviction.. 

Tax, fees, loss of interest income.