Any suggestions on getting rid of it or if he chooses to rent it out are there any laws or rules that would prevent him from renting out to people.

@Stacy Davis I believe the insurance institute also recommends original pin sol in flooded structures...to prevent mold as the wood dried out.

Current lease has restrictions that prevents subleasing without LL's written consent.As for who to sublease, he's thinking of his military friends who would stay for a short term (3 - 6 months) after which he's planning to replace them with others.I see a lot of posts here in BP where the current tenant wants to move out or terminate lease early in which case transferring or finding a replacement tenant makes sense.

Renting the property would help cover taxes, but won't prevent sister S trying to force the sale.

@Adnan M.What’s to prevent you from doing both?

When we made a visit after many years under their management, we found all sorts of issues that could have been prevented if the tenant had reported them earlier (rotting floors from leaky toilet, etc.) 

You get the property under contract to prevent someone else from buying it out from under you or bidding the price up.

Even if someone knows how to use a fireplace, the stacks need cleaning to prevent chimney fires.

If you do feel your rents are low, you can probably us a strategy of nuisance raises - $25-$50/mth per year increases to prevent the tenant from moving - it isn't much of a raise, but at least it's something PLUS you continue to get the appreciation. 

My assumption is they are just saying that as a way to show a “need” for replacement.Lastly, having required them to get a pre settlment inspection would not have prevented this.