We have been trying to work with Vacasa to manage it as a short term rental but we keep running into issues with their final inspection. 

Again, this is a very common 1031 strategy. 

The clerk told me to bring a written letter since title had not been issued yet and it has paused everything.

And I'm not even talking about the logistics issues, having people on the ground, having knowledge of the laws.

They can also refuse to move out and cause countless other issues, as some tenants do.

This might contain references, work information, renting history, and personal details.Make explicit the regulations pertaining to the usage of common areas, quiet hours, visitors, and other pertinent matters.

From getting loans to insurance costs etc, are their fewer people moving to the gulf coast due to these issues?

The issue is that I don't know if I am allowed to make a new lease at a much higher rent price with the tenant since he is under RSO, EVEN if the tenant is the one wanting it.

I realize that our partnership would need to file our 1065 for 2023, but would then the partnership issue subsequent K-1s to me and my wife, to which we would include when we file our personal taxes?  

Hard money/private money is common.