I know hosts have included additional cleaning fees for violations as a deterrent.If none of these solutions work, you could look into completely independent HVAC systems for the two units, though that would be a bigger upfront investment.

Their solution was for me to take over ownership of not one but five homes from Jeff's portfolio, all of which I had sold him and subsequently leased.Despite my being patently unfinanceable, the bank president placed a bet on me because I knew the homes, I knew the tenants, I knew what I was doing, and I was rabidly hungry.

In addition, while the umbrella did not end up having to pay out, having it meant I did not stress about it at all.  

To get that $10k yr you are giving up $250k tax free. ($300k has to be earned to net $250k.) so you’re looking 5 years of zero vacancy and zero capex to break even.

They provide all the solutions one could ask. 

I'd be happy to connect further and see how I can help, feel free to message me. 

Would a cash-out refinance to free up equity and keep growing be a smart move, or should I focus on paying down my existing debts?

Feel free to reach out if you would like more information.

* Are there creative solutions landlords use to address tenant concerns about parking in this area?

This will allow you to mitigate risk on the first property but also allow you to do a cash out refi on the second, so now you have access to tax free cash that you can do with whatever you please.