The properties are all in relatively good shape and the minor issues we've had the property manager simply took out of my monthly owner disbursement. 

If you served them notice, simply don't act on it.

Not for lack of wanting to work, but just transitioning from my current job. 

sure you simply have to make a lot of money.. either choose the tenant pain and the writeoffs that go with it or choose write on s and live with the income and tax burden.you can always buy a plane that will shelter a bunch of income. 

I would simply list it with a agent and sell it.

If it started getting hairy, I would simply say "Here is my lawyers number, feel free to contact them, have a good day". 

It's simply for asset protection purposes.

When the closing entity simply holds your money in their escrow account after closing you are deemed to have constructive receipt (meaning control if not possession) of the money. 

My suggestion is to simply do what they have done, what every business does, pass it off on the consumer.  

I have been tossing them to the side because my lack of knowledge in the area of short sales, but I feel like that might be a mistake to do.