If you inherit a tenant and they have been a good tenant, I see no reason to suddenly ask them to submit an application for a potential lease renewal. 

There was an interesting journal of accountancy article on this recently discussing the potential liability for CPA firms.  

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

Denver has a lot of older properties with value-add potential—small upgrades like fresh paint, updated kitchens, or even just better landscaping can make a big difference in forcing appreciation.

Your potential buyer suggesting you terminate the contract and them paying you a fee does sounds fishy to me.

Potential Rush: If the injunction is lifted and the deadline is not delayed, there could be a mad rush to comply at the last minute.

In fact, there may be other home service opportunities with quicker growth potential worth considering.Additionally, be aware that in Texas you’ll need a broker’s license, not just a real estate license, to operate a property management business.

I'm looking into possibly doing a 1031 or reverse 1031, have kind of identified potential markets. 

If a variance is needed, they're estimating 3-6 months, up to a year potentially. 

A really nice home with some extra touches (a little granite, better flooring, nicer paint job, nicer cabinets, etc.) compared to the area will make potential tenants fall in love with the place.  2) Tenants that bring or can swing their own appliances are more financially stable (or just stable in general, ha!)