An alternative to the 1031 is if he’s lived in the property for two years he can get up to $250,000 tax free if he single, or $500,000 if he’s married tax free. 

Continue to educate yourself on RE (I suggest starting your education with house hacking, alternate finance methods, and BRRRR). 

What alternative should I insist on?

Let me know if there is a recording available or alternative time. 

If rent goes to zero for 12 months, I would still be responsible for -Water bills in buildings that aren't separately metered -All repairs; roof, furnace, water heaters, appliances -Landscaping and other services-Fuel to and from properties -Equipment maintenance-Taxes and insurance for properties that aren't mortgaged -Any legal fees -Property management software feesAm I looking at this wrong?

That's if you don't expect to get anything from them soon but you think you can lease it quickly.As for an alternative approach, have they applied for unemployment insurance? 

We are exploring alternate methods of financing, but lenders will value our equity in the rental property as leverage for new deals when we have enough.Best of luck

Is that good vs other investment alternatives?

I can see your point in that universities will have to adapt to the new environment that we are living in and finding other alternatives to generating revenue.

Alternately, many of the companies that build ADU’s offer their own financing so you might ask around.