Myself I thought about 2017 was going to be kind of the end of the 10 year cycle and I actually put a presentation together called the Pivot looking at alternative ways to invest in RE. 

Is there a way to sell through a 1031 Exchange but then put the proceeds directly into a bunch of capital improvements at an already-owned like-kind property?

You may be required to honor these kinds of implied agreements even without them in writing.

We are considering stepping in and trying to buy the place, but looking for some guidance on STR and what kind of money this place can bring in. 

I kind of didn't want to mention that on the listing so that it wouldn't turn people away before they even had a chance to see it in person.  

What kind of property are you considering, SF, 2-4 MF, or 5+ MF?

Dwelling (Building coverage)The limit should be based on the Replacement Cost of the building (cost to rebuild withthe same kind and quality excluding the foundation)2.

That's kind of sad to hear.

As Jay said this kind of litigation can drag on for years before being resolved.

What kind of rates are they offering?