If you end up taking this to court I would be interested in hearing the resolution. 

Unfortunately, we were foolishly hoping for a quick resolution to this mess by going to small claims court.

Up until now, we have been using the Airbnb request payment service, however, the payouts come tagged as a "resolution".

What was your resolution?

Hopefully, once he realizes you can force a sale and WILL force a sale he will be more willing to negotiate a fair resolution to the situation. 

I don’t see a resolution anytime soon.

They normally only take cases that are pretty severe and obvious cases of discrimination.So, the odds of any applicant ever actually suing you are slim to none.And if you act in a fair manner, and have reasonable criteria for your tenants and your advertisements aren't overtly racist, you're probably never going to have any claims or lawsuits brought against you.And, even if someone was to get a fair housing lawyer involved, they are probably going to want to mediate a resolution that would be fair.You're always better off to just say a tenant doesn't meet your criteria than let someone in you're not comfortable with, or someone who is trying to bully their way into your unit. 

If I lived in a place that had included appliances, and one of them broke and was still broken over a month later with no resolution I would not be happy about it. 

From that point, we should be able to get some resolution that will allow the professional treatment of all the units at once, which should in turn put an end to this.

However, from your parents' perspective, they might see the sale as a separate financial transaction from the operation of the property, and therefore, they may expect to receive the full proceeds without deductions for taxes.Given these considerations, it might be worth having a calm and open conversation with your parents to clarify expectations and find a resolution that feels fair to both parties.