Lots of options as far as raising nightly rates as other STRs shut down, converting to MTR or LTR or doing an exchange to another state.

Otherwise you could be wasting your time.I have clients from CA and NY do exchanges in GA and other states.

If you want more cash flow and want to walk away with more of the 80%, perhaps identify another market and do a 1031 exchange so as to not pay capital gains taxes.  

I am currently waiting on a rather large legal settlement to hopefully hurry up and get him his $16,000 or if we can find someone to go ahead and pay him off early (no prepayment penalty), which would be hopefully paid off sooner than later as well in exchange for a secured lien on the property plus repayment of the $16,000 plus interest short term.

You are fortunate to be able to do a reverse exchange.

They have several other LLC's such as Home Partners that purchased properties at low prices and then quit claimed them to Guardian and then Guardian sold them to people who needed to 1031 exchange money into another property.

Is it possible to do a 1031 exchange and use the proceeds to buy a house using hard money, then refinance into a long term loan?

So if the partnership would not be allowed to purchase the entity together and I were to buy it, if we were to force our way down this road, would be to set up a legal agreement beforehand, I would buy the property since a partnership can not, and then the exchange for  ($$ + assigned roles + etc), my partner receives 50% equity?  

Some buy to park money, others do 1031 exchanges or they simply buy them for a tax write-off. 

AND THEY CAN SCREAM EASY AT THE TOP OF THEIR LUNGS IF THEY WANT.BUT GO AND CONVINCE YOUR NEAREST RELATIVE TO SELL THEIR LARGEST ASSET WITH YOU AT ONLY A 5% MARK UP AND YOU HAVE NO IDEA HOW REAL ESTATE EXCHANGES WORK.