Expediting the liquidation of RLT assets often minimizes capital gain taxes and results in smoother distributions to beneficiaries.

However, beyond giving this group an opportunity to do the right thing (I responded with appreciation for the transparency, the only 2 questions we're allowed to legally ask, and a gentle reminder that we are a dog-friendly property and it's a minimal cost of $20 per night), is there a better way to handle this?

I think you hit the nail on the head here, PM will make $ on the placement fee and in this case, they provided the work for the turn which wasn't minimal, so they made $ there as well. 

This balances maintaining your current property and expanding your investment portfolio, although it involves higher mortgage payments.Given your goal to minimize your ex’s financial benefit, selling your current home and purchasing a new house hack might be the most straightforward and financially advantageous route.

If your goal is to focus on minimal cost for this, that is when it might make more sense to do it as a purchase with a new mortgage. 

It's short and nobody I know regrets minimalizing, exploring and living a life free of regret.

This is my first investment property so I feel more hesitant about going into rehab work than something fairly newer or even older but with minimal repairs/recently renovated.

**Loan-to-Value (LTV) Leverage**: Lenders might be more willing to take a second position if the combined loan-to-value ratio is conservative, meaning there’s plenty of equity in the property and the lender’s risk is minimized.5.

But if you prefer stability and want to minimize future risk, the conventional loan provides more certainty.Ultimately, the decision depends on your cash flow needs, risk tolerance, and long-term strategy. 

and most of the time is  bad management, bought the wrong price, Interest and Insurance to the roof and, I cant get out the Bridge loan to do a DSCR loan etc ...Simple hands on, work do research and minimize risk.