Both situations you're reaching out to others to combine resources and fund projects.  

And to make it eligible for 1031 you would need to move out and turn it into an investment for a bit.However it's going to be worth your while spending a few minutes with an accountant to go over your specific situation.  

Was just wanting opinions of people more experienced with similar situations if This issue is even worth addressing or just ignoring.

Feeling a little stressed need help thinking of strategies.

The woman left says she cannot afford to stay alone supporting her children....there is only 2 months left on the lease which we are willing to allow them to walk away from just to be done with the situation but it is becoming extremely heated between the two of them.  

Has anyone been in a similar situation or come across anyone that has?

Looking for some insight on this unique situation - I tried to search for answers online and completely struck out.

So, while my research did not find any rental restrictions for STRs I did not discover that they couldn't give me a business license (before we bought the house.)After talking with the City Planner about the situation he told me I could go through the same process that a hotel or B&B does (approval process for Certificate of Conditional Use) but it basically comes down to a City Council meeting which is a public hearing.We discussed the fact that there already were people operating STRs in the city (and obviously not paying taxes to the city since they would not have a business license). 

So much to learn, adding the stress of doing all of this on your own seems like a mistake for most people.  

If I get a response on one of the properties, I will then assess the value and financial situation, see how much they owe and proceed accordingly with a short sale (if possible) or simply buy the house from them.