However, their lease is up in two months, so I would only focus on non-renewal for now.In my book, I explain methods for removing tenants without evicting them through court.

The cons as i see it include loosing the 2 of 5 year cap gain exception, typically not an ideal rental because the emphasis at purchase was buying a good home for your family and not a rental with optimal return (my ex-home consistently has the lowest cash flow for equity in my RE portfolio), not disconnected enough from the property causes addition angst on damage and may result in over improvement.  

Quote from @Jesse Valdez: When operating a business, it pays to know the laws.In most states, guests staying fewer than 30 days can be removed by police for failure to pay rent or obey the rules.

Take this example and remove the LLC as a part of this conversation for simplicity.

When you go to sell, Montvale requires a certificate of occupancy so this issue has to be resolved in advance of a sale.Although I am not a lender, I assume you will not be approved for an owner-occupied mortgage on 5-units if it is a legal 4-unit without some type of mortgage fraud whether in reported rents, units, or another legal document or representation (very very large issue from a legal perspective with multiple arrests in the last year for anyone playing fast and loose).As far as the DCA, I would recommend coordinating your work with the city with the DCA.

They recently split up and the wife is asking to be removed from the lease agreement.

Prop 33 is trying to get the exemption on rent control of SFR removed.  

Another property assessment included another home that had been demoed/removed before we bought the property. 

I actually ended up doing a 1st position HELOC and removing the mortgage all together.

Think on that, a person has an 80%+ chance of there "pick" not just loosing, but possibly going to $0.....