The house has been there since 1976 and had no flood history, so I did not opt to buy flood insurance.I feel horrible for the tenants, and I have no clue what I am going to do with this house that I just renovated a year ago.  

It has a college-like feel to it with restaurants and a nightlife- I would check out Peddler's Daughter, Martha's Exchange, or even The Garden on a Saturday night.

Now, if your PM missed a history of evictions or didn't check all adults who are living in the unit, that's certainly an issue.

We took the 2-12 plex units with an 11% return after agreed on a price and the rest is history.

The listing history is a little wonky but it looks like it just came back on the market in the last few days from a long time listed as short sale pending?

Based on history, our area experiences market corrections every 10-15 years.

Overly optimistic ARV's, hard money loans, shady tenants with unseasoned or flat out fraudulent payment histories abound. 

So unlike the units rent value affecting property value, would a garage with an awesome history of rent add value?

I have my license but I really only got it for my own deals, however I just helped my daughter find a house and the other realtor was a great source of assistance.  

Until then they would continue to owe rent on the place and failure to pay will result in an eviction which will remain on their credit history for an extensive period of time.In the future it may be useful to include (if allowed in your state) an Early Termination Clause in your lease.