Would it be beneficial for him to sell before foreclosure (via short sale)? 

If I try to 1031 the 12 units I currently have how do I find a decent complex in short time?

We are interested in the BRRR strategy but housing in our market is quite expensive and In short supply so we’re considering sellIng our Rental and doing a 1031 Exchange to invest in a less expensive market like Indianapolis.

Appraisals fall short all the time because he wants to personally control the market.

Short term I'm looking to pick up a couple of STR cabins here in the Smoky Mountains as I have a lot of connections in that arena.

I'm sure many professionals will jump in and introduce themselves shortly but you should definitely come by to the next local BP meetup!

I have been actively seeking another rental in the area, but all my offers keep coming up short and would like to network and maybe work with a local flipper on a property to gain additional experience.

Is it likely....probably not.I negotiated many times with hoa’s in short sales, but they were looking bigger losses if the bank foreclosed....depends on the situation.  

IF there is a no-fault eviction, you cannot re-rent the unit within the time period required for the property which includes short term rentals like Airbnb.

You refer to yourself as a "REI Mentor" and you freely offer your mentorship to new investors, but it might be wise to stop short of taking another investor's cash for a project that you are taking the lead on until you have more experience - You have said that you are not a professional flipper, but the primary problems you faced were not specific to flipping.