This area is not an area of appreciation, so we can't figure on that.I mentioned to my wife the idea of moving in to the house (after a 3 month renovation) due to it being in a better location and to my surprise, she was tentatively on board (with about an extra 5k of upgrades of course (new walk in shower, open lower level floor plan, some flooring, etc).What makes the most financial sense and why?

It's monthly payment is only $60/mo and includes all onboarding, rent collection, accounting, and a couple other things.  

One thing you may want to consider then is if you have some very close friends who can pony up some cash you could start a small LLC   ( like I did with the 1 million in cash) and go hunting for a bank that would collateralize your loans as you make them.. you may be surprised that you can get a small commercial bank on board with it...

I would get the sheriff on board ASAP and have them physically removed. 

"The Wife Is On board 100%.

Where even with more and more listings coming on board I am still able to come up on the first page of search results in AirBnb  I’d think if the host is doing it the right way it would actually be beneficial to the neighborhood.

Ask them to come on board, and show them how they can get more money every month as compare to long term rental.

BTW: the reason he was living with my tenant because  he was kicked out from apartment, based on rental history.Based on my original tenant history, I do want to work with them. i believe that now they have 2 kids and want to live in nice neighborhood , they may tent to live longer here.However with her BF on board, I am also wondering should I terminate lease and move one to new tenant.

However, you'll want your lender on board prior so you don't trigger a due on sale with the contribution into the LLC.

Here is my advice, Make sure that ALL partners  are on board and that you have one person who is the voice/manager or the go between yourselves and the possible PMC.