Replacing a sewer lateral is easily a $7500 repair; it's probably closer to $10k, and personally I would have prioritized it over t+p. 

If you want to get a weekly dose of STR info I highly recommend signing up for Garrett's STR news that is emailed weekly, here's how to do that - https://app.tango.us/app/workflow/BiggerPockets-free-Short-T...Keep us updated on what you decide and how things turn out!

If you would rather not have this be a stressful process and want to scale the easier and simpler way stick to turnkey deals.

And it sounds like this deal is stressing you, so time to move on in my humble opinion.

Plus, t looks like this requirement has been in place since 2021, so I have not been in compliance - anyone have experience with this?

With a DST not much upfront work to select and can relieve some stress with a 1031.

With four plex you have to pay utilities for the hallway and common areas, also maintain and clean the common areas, because the tenants won''t.

Quote from @Henry T.: Right?

If it will stress you out, maybe another path is prudent.  

There's always drama with drug addicts and alcoholics, in addition to the stress of group living.