My father-in-law almost always does 1031-exchanges when selling his properties.

There is a concept in the law I believe called "undue enrichment" meaning that you benefited by something they did. 

Knowing the laws.

I think this is proven that even in ponzi criminal case, if asset has good valuation and the law is being done properly, we will get our money back as investor.

The only reason you should not enforce action is if its contrary to an applicable law or regulation...Here is another section from Seller Covenants:Seller agrees to honor requests for execution of endorsements of Mortgage Note from Seller to Buyer if made within thirty (30) days following the Transfer Date, after which Seller shall not be obligated to honor such requests.So if there was an issue with a prior document, after 30 days they can tell you to go pound sand - and based on court documents, this has happened. 

Then take pictures of exactly how you found it and how it looks after cleaning.Start by sending them an itemized bill within the timeframe allowed by law.

As mentioned above check your local laws regarding STR, occupancy, building code etc.If good on the above, then figure out your cost. 

I'd also look at landlord tenancy laws for WA as I think they are pretty tenant friendly and getting rid of a bad tenant (even one who doesn't pay rent) may be hard.You mentioned you'd profit $130K if you sold it. 

https://www.kts-law.com/practice-areas/landlord-tenant-law/Good luck!

Plus, there is no State income tax in Nevada and the tenant/landlord laws are still more landlord friendly.