This is my first time making a post on Bigger Pockets so bear with me.  

Going forward, what is the best way to structure the partnership so we can 1031 exchange in the future?

The goals to make this easier for the landlord to incentivize them to continue to rent to you so that you can run your business out of their unit. 

But so many things could be so much better.

So if we were given 30 days notice we could turn on our marketing, screen applicants and almost always dovetail  the new tenant’s move-in to within a few days of the old tenant exiting.  

The IRS requires a very detailed mileage log, so if you are ever audited, you run the risk of losing your mileage expense if you simply estimate.

It's expensive but so are big mistakes.

So no need to rehab currently.

My understanding is that most lenders will file a mortgage lien on the subject property as soon as the loan is signed so as to preserve their rights, but what if the lender did not do so before the borrower defaulted?

. $70k for a full gut renovation doesn't sound like much, depending on how many square feet the property is.Also, it might be worth finding another local investor in Lorain who understands the building court...you should be able to attend, tell them the story, and then find a creditable contractor to get this done or figure out what you could whole sell the property for so you can get out from under the stress.