There will be some compromise as the two deadbeats are likely the reason for his selling and working with you.   

I told them “I am not going to compromise my integrity on your behalf, I’m sorry.”

Downsides are that while "free," floor space is compromised, curb appeal diminished, and maybe biggest:  the local board hates garages. 

You may also consider raising the rent to a number that you are more comfortable with accepting each month as a compromise between your business side of not collecting a high enough rent and your ethical side of not wanting to kick someone out in the middle of winter.

You’re going to need to compromise some aspect of your criteria....but it seems like you already know that.

When the wear layer on a laminate is compromised there is no fixing it, any fix like filling with puddy and restaining on a laminate floor will look like garbage and fall apart quickly. 

It's been discovered that the current tenant fabricated his lease to meet certain requirements with the fuel supplier as the lease we have is drastically different than the one his attorney sent us.At this point we can pursue this legally but the deal is compromised as the buyer is already asking for a reduction in price and who knows how long it will take and how much it will cost to get the tenant out.

This is something I tell my own clients now as a Realtor - you probably aren't going to get a killer price AND owner financing... killer prices are for cash, owner financing means some compromise and some compensation for a seller's risk.

Or do i go with ACME pest service that is likely going to save a few hundreds dollars and may or may not offer a warranty.I'm obviously going to repair all visible termite damage as well as anything compromising structural integrity - but i want to minimize the financial penalty when sell of disclosing the house has been treated for termites. 

The FBI calls it the Business Email Compromise scam and it causes big losses.