I’ve started to consider pivoting my strategy in the spirit of “failing fast,” and figure that in 2-3 years I could conservatively do 1-2 flips and then 1031 that into a larger multifamily property and try to execute my original strategy.

Plumbing Inspector came out and failed the plumbers for some work they did and also dinged me on simple repairs/updates I was doing in the house.

This means they must provide credible evidence to support their claims and comply with all substantiation and record-keeping requirements mandated by the tax code.Despite the taxpayers' testimony that the RV served as a boat sales office and provided nighttime security, they failed to produce any records or documentation to substantiate these claims.

They try to use it as last month's rent or fail to clean because they assume the Landlord is going to keep the deposit anyway (far too many Landlords do).

Buyer fails to pay and rips the rents because the loan is not in their name and the property is in their name..

Also, what happens if you fail to maintain proper insurance coverage and their is a total loss due to a fire?

If you got an attorney to evict in Jan and they failed to tell you to get a cashier's check or money order and wait for it to clear before dropping anything, then your attorney sucks.Real estate is a marathon, not a sprint. 

If they fail or refuse, then I keep the Holding Fee and the property goes back on the market.Be careful with your language.

Should I be concerned about all the failed STRs turning to LTRs and flooding the market along with all the new construction?

The notice specifically relates to "saving a failed 1031 exchange".