Can/should I sue in small claims for August rent?  

It's been 6 wks, and damage mitigation is done, but repairs not yet even started, so this will likely take a while.There is an open liability claim for the at fault unit (they have a renter's policy) that I've been dealing with who have been putting up a fight.

A DST for two people is generally going to be prohibitively expensive.But that being said, @Joey Brehm could 1031 into the new property as the correct tax payer even using his partners money for the purchase and then after the fact create a new entity that the property would be quit claimed into with both of them as membersLot's of questions to be answered twixt here and there!

They claim even after running multiple rinse cycle, the water is running brown.

I've handled hundreds of title claims in western states, CA, NV, AZ, TX etc., but compared to the total transactions title claims are a small percentage, unless you're the one with the defective title. 

Were they reliable and honest when you had to file a claim?

I was researching the list of propositions and think the below website may have described the relationship: https://ballotpedia.org/California_Proposition_15,_Tax_on_Commercial_and_Industrial_Properties_for_Education_and_Local_Government_Funding_Initiative_(2020)Ana Maria,I wasn't asking about the relationship between Prop 13 and Prop 15; I'm well aware of it.I was asking the original poster for any information backing up this claim of his:"Also understand that those proposing these measures have clearly indicated that these initiatives represent merely a first step in their long-term plans to effect the single largest wealth grab in the state's history."

She said she hasn't filed with the insurance company yet and she is willing to put a claim in and let me put it toward fixing the home.

You should collect under your name as LLC will request for you to claim income and you legally cannot operate a 'business' out of your home per your loan contract so that would be your best bet. 

That report deals with Claims.