If you find an area with no MUD tax, you can usually reduce your tax rate by about 1%.  

If they regarded it as outdated or undesirable anything is possible.

They build custom shower pans out of deck mud, PVC liner, and waterproofing compound on the East Coast, but out of hot asphalt way out West, that sort of thing.

I would also do the drywall/ mudding tapping as well as paint work yourself.

If they pay prior to be evicted, they have just become an undesired tenant and will get max rent increase until they leave.  

The property is damaged beyond reasonable repair (although you said it's turnkey), the tenant's have not been paying rent at all, the rents aren't actually set at $1,000 per unit, the area is too undesirable even for investors to handle, etc.

We knew there were foundation issues, and along with shoddy/improper support beams/joists, we also discovered excessive water. over a foot in low spaces. essentially the house has been sinking slowly due to the ground being mud.

Las Vegas ones are 80% undesirable as well.

Removed multiple walls, opened floorplan, re-designed kitchen, added half bath, first floor laundry and mud room.

I could see a 2bd 1 ba but a 3 or 4 bd 1ba sounds very undesirable.