I don't know anything about your situation, but possibly think about selling the home and leaving it up to the next buyer/investor to deal with.

I have a mix of flips, buy and hold, buy and sell on contract for deed, one vacation rental, and one current apartment syndication.  

To get it at short sale, the seller going through the foreclosure would have to be convinced it is the more favorable option pretty soon and choose to sell at a lose than risk the consequences of foreclosure.

In late 2023, I got an email from the owner that he was ready to sell.

One of these unit owners, who is now refusing to pay, is also attempting to sell their unit, so obviously they don't have a vested interest in the building anymore.

The properties you are selling and buying in a 1031 must be properties you intent to hold for investment use. 

What if you have to sell quickly and then the town takes your second bathroom and your price drops 25k?

Ultimately, should the business not succeed or perform as well as you intended, owning a property in a strong location will be attractive to other users that you could choose to sell or lease to yourself.

This practical guide delves into the essentials of real estate investing, equipping you with the knowledge and strategies needed to embark on this lucrative journey toward financial freedom.Understanding the Basics of Real Estate InvestmentReal estate investing involves purchasing, owning, managing, renting, or selling real estate for profit.

Looking to potentially sell or 1031 that eventually.