Personally I would never accept 1/2 rent because they will get used to your charity like feeding a stray dog and they'll decide to stick around until you evict them.Tell them nicely it's time to downsize into a smaller dwelling before his savings and credit are destroyed.

Properties are 2 town-homes and they have not been completely destroyed but they do need work.The loan will be about 33% of the ARV for each of the properties (basically the value of the land). 

I don't want to come across as too strong with the tenant and destroy that relationship, though I want the board to recognize that I am serious about resolving issues.

Some would say they help destroyed the housing market in the past but who am I to judge.In the past, this is how it worked. 

Of course, when numbers get real small like that, variability destroys the analysis.  

However, there are many others who's lives were destroyed by relying on the advice of an ignorant fool.  

Tenants, over time, have destroyed everything else that has been in there: wood, carpet, vinyl, laminate...everything.

Knowledge is definitely power and ignorance destroys. 

The key here is to keep them from destroying your house. 

These tenants have basically destroyed the property so we are ok with this.