Detroit metro, first and out of state rental property

[Minhee Kang]

My first investment property and it is out of state investment. I need some experts help and advise..

About a year ago, I bought a property in RiverRouge, MI in Wayne County, near detroit. We got it for 30k, 3 bedrooms 1 bathroom, 2 cars garage single family home. The property had several issues. Needed to patch and replace some part of the roof, water pipes were frozen and broken, had to replace and relocate, etc. Getting the permit for rental was costly, tricky and a lengthy process. It almost looked like the city is just looking for more and more excuses to get more money from the investors. 

But we got it all fixed and got permits to rent. We got our tan ants in but in the first few weeks, got some problem with water due to the severe winter storm. To compensate, offered one month rent for free or tanant can walk away from the lease if not satisfied. She accepted one month rent for free and wanted stay. However, when it was time to pay the following month's rent, she suddenly changed mind and started to complain about the living condition and wanted to cancel the lease. 

My property manager recommended not to put heavy burden on her, saying he is afraid that the tanant will trash the house if we push to use the security deposit for the days she stayed after the free month. Also said it is better to let her go rather than filling to court since we will lose more time but will not necessarily get more money.

I am horrified of the policy of the city of River Rouge, how unfair and unprofessional they are for the investors (especially for a naive investor like me) and horrified with my first experience with the tanant and not sure about my property manager. 

Should I sell with the loss or did I get the worst possible case? Any advice/opinion will help. Thanks in advance.

P.S. I am leaning toward to selling the property and just forget about the lose. I am open if anyone knows good agent in the area who I could trust