Is this just overkill? 

This does not pass the sniff test for me.

@Andrew Caton Hey Andrew - Looks like your going about this the right way, you just need to find the right person/people.

@Jeff Sitti  I hope you are a true friend to this person.    

This is his specialty.

I am glad you are getting some money back on this situation, but the fact remains that your PM was seriously negligent in this situation and oversaw the run up of this ridiculous and unreasonable bill.

I recommend you really study your market to determine the appropriate rent rate, then market yours 5-10% below the competition for a six-month lease.

This will affect how you market a lot.One piece of advice on what you wrote.

Quote from @Reginald Glascoe: I definitely don't want to start this process over again. 

I do not remember the numbers but this property obviously needed full rehab.