The third option, I stay in my house an hour away from work and continue to pay 400 bucks in gas and wear and tear on the car.

So this being said, should i take the risk to upgrade the flooring and likely have to replace again when she moves out due to animal scratches and tear up? 

Each unit is 1 bd 1 bth, has a sun porch, and a detached garage stall that goes with.The building is about 2600 Sqft, and needs a new roof (it would be a 3 layer tear-off, 2 layers of shingles and 1 layer of cedar).

New layouts, moving walls or god forbid an addition...you’ll tear your hair out with SF’s nutty city approvals, and your neighbors will be all in your business if you’re increasing the size of the home. 

I'm a deep South gal at heart, specifically HOTLANTA, but circumstances moved me to Central PA and my REI blood, sweat, and tears paid off in a big, personal way.

For the record, we’d be tearing it down and using it as a yard, parking an RV on it maybe or building on it down the road.

Build the fence if you are sure it is your property, if they don't like it they can sue and lose because it isn't on their land, if they tear it down or damage it you can sue in small claims court if you want but it may not be worth your time to do so. 

Assuming there will be several students sharing this property, and the nature of your tenant, I'd assume that there will be much more wear and tear on your property than $83/month.

i will replace cabinets this summer along with tearing down the wall.

Again, the worse the tenants are, generally the more wear and tear you'll have in the long termWhat do you anticipate your capex/replacement reserve should be?