This is a garden home and the yard is fenced in with a 10 foot privacy board in board fence The neighbor stated it was making her violently ill and that it is a health hazard for her as it was coming in through her vents and or windowsshe has also been known to harass my last tenant, and sending us text that trees are too close to her home telling us that we need to cut it because there were branches over her skylight and she claims that it was scratching the cover. she called the city when the last tenant had to sell all of her items at an estate sale due to loosing her job and having to move from the property and cited that she was in violation of city ordinances due to not informing the county of an estate sale.

You will have to switch from a homeowner’s insurance policy to a landlord insurance policy which covers rental specific risks.3.

Furthermore the attorney said I'd have to cover the tenants lawyer cost if I brought them to small claims. 

Consider a duplex or triplex, live in one unit, and rent out the others to help cover your mortgage.

i.e. deductible for a roof replacement or replacing an HVAC unit or replacing a hot water heater? 

You remodeled it at some point and added a new roof and HVAC system and that was all in for 50k.

This is how its done.As a rental rehabber (for my own portfolio) I just need; a decent handyman who can do simple electtrical fixtures, plumbing fixtures, fix leaks etc, an HVAC if I plan on replacing the system, a roofer if I need a roof (rarely), a painter, and a lawn guy to clean up the lawn.   

Current lease agreement says tenants will cover utilities. 

Hear from Mitzi Taylor, Broker/owner in her home town of Pea Ridge; Lori Hawkins and her husband handle Madison County residential and land listings for Smith & Assoc with major focus on Huntsville; and Robert Smiley of McGraw Realty covers Siliam Springs as well as Eastern Oklahoma.

Like already mentioned there's not much to do....2 days exploring the area would cover everything.