Markets like Clarksville, TN have much more favorable balances of cash flow and appreciation. 

If you make this a balloon payment in say 5 years, you've helped your cashflow, and you can refinance to pay out the balance of the 2nd mtg.I do have to ask though - you seem quite emotionally invested at this point - what are average house prices in this neighbourhood?

We have come close to filing eviction many times.We do have a clause in our rental agreement that helps protect us from short timers, if it is legal in your state:After additional deductions for cleaning and repairs necessary to restore the premises to its original condition (less allowance for reasonable wear and tear), along with deductions for any rent due (including rent loss during periods of restoration), late fee, caused inspection/eviction, utility, notice, legal and any breach of contract costs, the balance of the security fee shall be refunded pro rata as follows: 10% of the remaining balance for up to one month of occupancy; 20% for two months, 30% for 3 months, 40% for 4 months, 50% for 5 months, …and so forth until 100% for 10 months or more of occupancy; 

I've witnessed decreased credit scores, rising credit balances, and stricter underwriter guidelines.

A bit undecided on whether to take the proceeds of the sale, pay capital gains taxes on it and invest the balance or do a 1031 exchange and replace the property with another. 

Unless its about the full unpaid balance there's nothing to discuss.

Also, business cards are evaluated differently and high balances aren't treated as severely, if at all.My main concern is how to structure a deal so these get paid back in a timely manor.

Usually, you should bring over your trial balances as of last year when you filed taxes, YTD all activity and all data including tenant balances etc to the new PM Software.

If someone is working with a lower balance of funds like I am, than I'm more likely to prefer cashflow so that I can continue to afford the property as well as my life style.If I had some disposable income that was in excess of what I need to live on, than I'm more inclined to look forward towards appreciation because I would have enough wealth to take the hit now for the bigger payment in the future. 

Detroit is known as the highest rent to price ratio in the country…and we’ve found the perfect balance of price/location within the area.Here is a picture of my portfolio...