With proper communication and giving the current tenants ample notice, I think you would be giving them plenty of time for them to make a decision that is best for them.

Ok, now we are back to taking advantage, because buyer is NOT capitalized properly, and banks won't lend to them because of RISK of non-performance.     

Once you are in escrow, you hold all of those cards if your contract is written properly and you know how to negotiate those contingencies. 

Don't waste time and do it properly, and don't worry about pennies when it can drag into the thousands.

I guess had he still lived there, Form 4797 would have been the proper choice.

They were good at taking your money and timely kicking out certificates of insurance, but if you have a claim, that is a different story.While they paid a fire claim (an ex-lover of the tenant set the dwelling on fire, because the tenant purportedly broke up with him) NREIG made it difficult, and attempted to undervalue the claim on the basis the property was not properly insured.  

New laws just make proper screening so much more important.  

If the answer to the last question is because they would rather stay at home and don't want to get a job or they have a job, but want to 'enjoy' their lifestyle and not be 'burdened' by bills, then it is time for them to grow up and move out.

While I am surprised at that, I also think it is the proper way to view real estate.I always go back to my first vacation rental purchase as an example:  In 2005, I bought a beautiful, 2-acre creek-side cabin in Cosby (near Gatlinburg) for $240,000. 

Take ownership of your mistake and learn to do the proper due diligence recommended above😊