I"m like oh crap now what...Well apparently they started ripping out the dry wall and tearing up the floor to get to the root cause of the water problem while I was at Lowe's.

Dry rot in one rafter, clear signs of leaking, water damage on ceiling of a unit.

It's kind of an odd setup, basement is a garage/office for a rent a car place and there's a hair salon too.  

Wells that used to produce at 300 ft are now dry, and new wells are going in at 700 to 800 ft.I have heard of well costs ranging from $10,000 to $40,000 depending on the area.

I'm wanting them to dry faster so I can get them out of my dining room.Blow Dryer?

Intent applies to if you are trying to do a 1031 or in some financing situations, but as to capital gains taxes, it is fairly cut and dry ... you must own for 12 months or more, as Lance correctly said.

TL;DR I like a foreclosure, the roof leaks, credit union doesn't seem excited to finance it, ideas?

I had to borrow against my equity via a HELOC to keep the ship afloat, and when the market decreased the prices and my inflated equity dried up...Well, let's just say it was not pretty.So I can believe that you have done all your due diligence in outlining the numbers and analyzing the deal, and like you say, since you don't need to do a deal just because you want one, why not pass and continue to look for an investment that works for you financially and personally?

Make proof positive it leans a hair outside so water does not run down your wall. 

The dry cleaning racks look less full these days.