Personally I am thinking 1c. 1c but 2 being more true then we would like. 

I knew that was not true because I had paid $780 a couple months before on a property in the same area and also my realtor told me that her clients had been paying that lower rate.

I do not believe I am RentRedi's target consumer as I have more needs than others and that has been true for other business relationships I tried to build in my time, but I hate when things have to end on sour notes and the fact that it took publicly criticizing the service to get attention is more than disappointing on RentRedi's part as a service business.

It might be true.

The algorithm likes bright/colorful photos. 

Which is true.

The flyer you linked is about food safety rules by the Department of Agriculture and states they only allow true service animals in food establishments.

This is absolutely true . . . once the agent is rolling. 

Quote from @Jessie Matlock:One of my main questions is, I've been told I'll receive a K1 statement and that my monthly returns will be tax free. 1) Is it true they will be tax free? 

Assuming that's true, I would recommend looking for a replacement property (or properties - you can purchase multiple in the exchange) with value of at least $725K (selling price).