In the meantime we are talking to the property manager to find other STR's in the area so we can support a fair market STR rent. 

Most likely all new mechanicals, windows, a fair amount of framing, insulation, etc., etc.

However, consider STR seasonality, local regulations, and management demands, and ensure your equity loan and new primary residence costs fit comfortably within your budget.

I knew the fire insurance would be CA Fair Plan.  

Hi Jonathan,Jay’s Fencing (209-847-3992), Elite Iron Fencing (209-968-6685), and Fletcher Fencing (209-662-8298) are solid options to get bids from and compare.I also offer consulting services to help clients navigate projects like this—whether it’s evaluating bids, ensuring the scope of work is clear, or helping you avoid potential issues during the process.

Consider the possibility that the property is already priced quite fairly.

PM is lying about the fair housing laws.

Being a rehab loan it was still fairly expensive.   

A good manager will handle tenant communication, security deposit transfers, and ensure a smooth transition for you.Changing managers doesn’t have to be difficult—following the agreement and partnering with a competent new PM will help you get things back on track.

You've probably heard of big Landlords losing property, but only because they were flagrantly violating Fair Housing, running a slum, or otherwise violating the law in an egregious manner.