OP said the water lien wasn't recorded when she took title. 

Fund a condo reservethere is a good amount of legal involved in this, and if that is the case, it may not be worth it.

It might be worth it, but it might be better to make the property more appealing in some other way.

If you're not having luck it could be worth going to the hospitals in person and bringing some info/pictures of your listing 

For example we'll be staging a unit and then doing high quality 3d floorplan pictures and creating a website on the units and other collateral because we know we can use those assets again and again for years and the costs will be worth it.

I bought it for $170K and 2.5 years later its worth $185K.Is it better to keep the rental (as part of my retirement planning) as a long- term investment or should I sell, pay off all consumer debt ($67K) and put the left over cash in IRA, 401K, HYSA?

Once an eviction is on their record, it will be harder to find a rental. 

I'm locked in at 3%, but let's say I refinance at a higher rate where my mortgage only goes up a couple hundred dollars, but I'm still able to cash flow, does it make it worth it?

If it were me and I used a placement company to find tenants, I would want to know at least what the report said about the tenant or get a print copy for my records.

If they are good at marketing your property, finding the right tenant and managing maintenance costs they are well worth 8-10%.