The house is a new construction in a Class C neighborhood.The tenants pay late rate ~50% of time, they damaged part of the garage, they have people not of the lease living there, and they leave trash in the yard.Part of me wants to keep these tenants because:-They do pay eventually-I don't want vacancy-The turnover costs could/will be high-How much more damage could they do?

They are short term loans, usually 6-12 months, high rate, interest only payments. 

If you are willing to do the work, the landlord can often be the first point of contact with housing assistance.

The interest rate is not special nor is the 20% down (80% LTV).  

Our cash on cash return is essentially infinite as we make money on the delta between the yield of the discounted note that we purchase and the interest rate we pay to our passive private capital partners. 

CO states single dwelling (converting to a 2fam will cost upward of $100k- not an option).If I hold out- the property will have net profit of $600- possibly more if I refi again to bring my rate down. 

Should I wait for Spring for greater inventory, or for lower rates to see if cashflow improves?

How many contacts/leads are resulting from this?

It's debt you'd still have to pay back, but at least you will not touch one of those two amazing interest rates. 

If someone offered to finance this house to you at your current rates if you put down $250k would you do it?