I have already sold by owner and am well aware of 1031.

Like mentioned it's also beneficial to keep up to date with what's happening in the area your STR is located, and make sure the decision makers are aware of hosts and what they bring to the community.

I have been cautious about raising rents as I try to maintain goodwill with the tenants.

Purchase price: $520,000 Raised 100% of the funds to buy this property.

Are you aware of how long he has been residing there?

If the proforma has the rent roll at $1400 a month, there is a discrepancy that could lead you into a bad assumption on your business plan.Also one caveat, be aware of physical delineations around the area like bridges or railroad tracks or a canal. 

Yesterday, the landlord stated that it was their impression that we had agreed to painting not only the two rooms but extra rooms as well and now they are saying they are going to void the clause and raise the rent back to $3200, or we have to paint extra rooms not agreed upon.

I know they raised a lot of money though

It is clear from the interview that their main skill set is raising money and they partner with other "Co-GPs" who focus on the operations. 

Here they all start with "Are you aware of any XYC.." and none of them are asking about previous repairs or issues.I understand that you are concerned, but honestly, if the water damage was resolved, the soaked parts replaced, why would it matter any longer?