If you get rid of the PMI and bring money to the table, you can easily achieve that.

The problem is when you break the law, don't follow code, use under the table workers, illegal workers, ignore reported problems, gross negligence, etc.

But if you decide to continue holding after that point you'll have the 1031 option.I'm a big fan of tax free and taking chips off the table. 

Now I think your best option is to lay it all out on the table to them, and give them the choice to move out or deal with updates and rent increase.

I have an offer on the table for a home that is still tenant occupied.

So I'm a big believer in french drains.

Once, that's on the table shift to what has really transpired and the events (facts) that have lead to your frustration.  

You need to bring some sort of value to the table.

He can get a HELOC and use it for REI all without moving and subsidizing your living expenses.What are you bringing to the table and why would your uncle want to partner with you, other than you're his niece and he loves you?

Finding the deal through my contacts, making the deal happen through negotiation and bringing cash to the closing table.