I'm seeking advice on a challenging situation with one of my rental properties, a condominium that was damaged in a fire incident.

Have your Contractor verify that pier n post is all code legal (looks like cinder block, no seismic straps, PT, in back looks like a 2x4?) 

You could be overlooking some knuckleheads doing damage to the place - I've thought about doing the same thing for my daughter in a few years.

Yes - it's somewhat street by street when you go south of central but being within say 10 blocks of central ave you're still in a great proximity to downtown. 

I would not necessarily give up the deposit (if you have one) until a move-out inspection is performed so that there is some security for damages caused to the property.

Property is exempt from STR permitting because the jurisdiction considers it to be a commercial lodging establishment.We've been pursuing an SBA 504 loan for it, which was going well until we discovered that the sellers have operated it only part-time the last 12 years -- intentionally blocking 60% of available room-nights because they just weren't up for running it full time in their retirement. 

The boss is firm with it being Wildwood Crest only, very close to the beginning of the boardwalk, and 1-2 blocks from the water.

The carpet in the 2nd bedroom is kind of damaged by the current tenants rolling office chair back and forth.

But how much damage will be done by hoping for the unknown and operating at a loss?

But surely you can evict if they cause a lot of damage or don’t pay their rent, right?