Sounds like a small claims court situation. keep track of all expenses.  

I am leaning towards building a smaller 800-1,000 sqft modern cabin as a STR and for personal use throughout the year.

Then start keeping every other property for multifamily rentals.

I will always recommend using someone that comes as a referral from another person that has used that company/person.  

I have a few partners, but went over budget and personally funded the remaining construction costs.  

I personally am the agent on this transaction

I don't want to sell the property, however given the need to rent another place for my parents I can't afford to keep it solely on my own. 

Samantha I don't believe you or anyone associated to this person has ever reached out to us to discuss any such claims. 

I have seen it extended with an LOE - letter of explanation as well.Make sure that you have all of the information on the renters like contact info, length of time renting units, pets, and on the walk through make sure the units are well kept if you plan on keeping renters.

I haven't personally looked, but depending on how far you consider "something nearby" you could start to look towards Bakersfield/Fresno or moving east.