Welcome to the community and be ready for a huge amount of information at your finger tips.

This active income can help me fund my retirement as well as help me get reimbursement for home office and health care premium while lower my tax liability.

You have not documented these incidents, nor have YOU informed your tenant this behavior is unacceptable.  

While you should always consult a CPA and/or attorney for their professional advice, here's my 3 cents (I'm sure others will chime in as well):1) Having an LLC may make it "easier" to track but it's not needed in this situation as you can run this through your personal return just as well.

Quote from @Dustin Wilkes: Well hello there everyone.  

Found T&H realty services to be pretty interesting as they provide both buyer brokerage service (to help me find deals) as well as do property management i.e. they are not full turnkey provider necessarily, but reduces some of the hassle for me I guess as an out of state investor. 

They need a well-designed workspace, ultra-fast Wi-Fi, and long-stay conveniences like a washer/dryer and a fully equipped kitchen.Why This Matters for Your ROI:When your STR feels tailor-made for a specific type of guest, it stands out in a crowded market—leading to higher occupancy, better reviews, and repeat bookings. 

I have been looking at sf homes with comparable SqFt to one of the units, as well as the units combined to try and get a feel for what this is worth.

Don't apologize, don't explain how the 'chosen' tenant was more qualified than they were, wish them well in their search.You're running a business and you've made a business decision. 

You might be able to go this route if your lease says something to that effect.Without lease support, you can write them a letter informing them they are in violation of the terms of their lease due to the lack of proof of insurance.