My wife and I have been doing some heavy research as of lately in terms of alternate sources of income and investment strategies and have come to an agreement that our ultimate goal is to replace our active income with passive income.  

or other option : if he can find a replacement roommate. 

Looks like they painted and replaced some floors.

Replacement house needs new windows, concrete steps, patio roof, backyard fence.

It's a business case analysis.There's also another way to look at this; What can you purchase with $560087 that would replace and/or surpass the lost monthly cash flow and still have $ in the bank.

We painted the cabinets instead of replacing them.

And it's even ok to get under contract for your replacement before you close the sale of your old property. 

On the lease make sure you say lost keys cost $150 for lock replacement.   

You have 45 days to identify replacement property that 180 to close on said property(s).Its a way of kicking the can down the road with taxes.

That type of issue may keep recurring and you may be forced to cut open walls to replace.