However, he still has some items (TV, bags) in the garage.

Will ask them to send me the itemized closing costs / loan points details etc. so that I may compare.Thanks @Jay Hinrichs for that.

We own a restaurant building in Downtown Phoenix, and my tenant is having a horrible time with indigence hanging out or parking there at night and leaving dirty diapers and other items.

Is a store like Home Depot the spot to get these items?

Some PMs know they aren't good at handling (or don't want to handle) certain items. 

Start by itemizing the expenses and send them an itemized invoice; include unpaid rent, utilities, etc. 

If you go the AirBnB route just make sure you go all in - don't skimp on furnishings, design and amenities - so give yourself enough room to purchase these items.

At this point in time, I don't think selling would be my best option as I've spent a lot of money on capex items that I would not necessarily immediately get back from selling. 

Alternatively, you may receive a counteroffer on the rent amount and be asked to either accept or deny.If you are unsure about the items needed for the initial inspection, I suggest asking the housing authority for a checklist.

After including all of those line items it would be good to see $150-$200 per month per unit.