Why would you dispose of a money making asset unless you can increase the net returns?

Perhaps they will be willing to stay on for increased rent. 

What would be the proper solution to this in order for a potential buyer to be attracted to this deal and inherit the tenants?

Increase income, reduce expenses, save, and invest.

Just look at whether the increase in payment would be beneficial based on what you are going to do with the money.

To increase cashflow to move into a STR situation, which then has tax benefits, yes. 

Throughout 2023, increased apartment inventory led to more significant rent reductions, particularly in high-supply markets.

Many OOS investors set themselves up for failure because they don't invest the time to ACTUALLY understand:1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.2) The Class of the PROPERTY they are buying - which is relative to the overall area.3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.7) That OOS property Class rankings are often different than the Class ranking of the local market they live.Class A is relatively easy to manage, can even be DIY remote managed from another state.

Take it on the chin and eat the 3 years of holding costs and increase in construction costs?

(To increase income numbers).