This business seems very very shady.

Now, other tax incentives like simple business write offs for expenses to set up the properties as an STR that’s most likely still something you can write off against your rental income gains.

I have managed my rentals on a very basic spreadsheet (poorly managed) and it is time to clean up my accounting and legal structures.Can anyone opine on a cheap and effective software for the accounting side of the business? 

Am I allowed to terminate their services at this stage?

Build relationships and don't treat every person as a transaction, and these types of things won't happen to you.We lend to plenty of investors who use the same wholesalers time and time again and don't try to do any of these things because the numbers work for everyone.Build a quality book of business and none of these things will be issues.

While still allowing you to reap all of the benefits of real estate ownership including not just a return, but also capital appreciation, depreciation, and amortization of the loan (if you have one).This kind of transition is exactly what 1031 exchanges are designed for.

That would free up $35K to use for renovations of another DP on another REI.That should still allow you to cash flow while savings funds and staying cash fluid.   

I'm not in the short term rental business but if they are independent contractors then you don't owe them anything.

Do you know short-term rentals are only allowed in certain markets?

https://www.amazon.com/Funny-Decor-Office-Business-Aluminum/...Like this?