Over time, as property values increase, your wealth grows.Tax Benefits: Rental properties offer tax advantages such as depreciation and mortgage interest deductions, which can help reduce your overall tax liability.Scalability: Once you’ve mastered the BRRRR method, it becomes easier to replicate.

Fridge - I could purchase the new door and deduct.

I would look at their policies and make sure both the coverage and deductibles meet your needs. 

There are some zip codes where you can indeed get above market rent with S8 (even after deducting utility allowance), but some where they are lower.

This is also tax deductible.

Would it be better to do some remodeling and deduct those costs from the sale proceeds, or should I foreclose and sell the property "as-is"?

If you're left with $107k across all 3 units after ALL expenses are deducted (some people don't include PITI when they discuss NOI) then I'd say it's darn good.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

Before the income subject to UBIT is calculated you can depreciate and deduct expenses and losses on that portion of the income so generally it's not as bad as people think. 

It would/could be only 15% capital gains tax and yes you could/would deduct all selling costs including commissions and transfer taxes.