Rest assured, we're actively working on addressing these aspects to ensure a smoother and more reliable experience moving forward.

This company completely falsified any work or outcomes.

We know they’re hard working and would like to continue working with them rather than move toward foreclosure, but we know they’re in over their heads if we continue under the current terms of the mortgage and don’t want to set them up for failure. 

Quote from @Emily Gowen: I only recommend investors sell when they can move the money to a better-performing investment or when the sale moves them closer to a specific goal.

Could it attract squatters, or is it the right move for responsible property management?

I would definitely reach out to several brokerages within the area that could better facilitate as the middleman when Insurance Companies do reach out. 

Moving forward the REI investing world is once again normal.

Much of it based on defense spending that will likely increase as assets are moved from Colorado to Alabama to include the Space Command HQ.

There's no problems living next to your tenants, just tell them your the manager NOT the owner to avoid guilt tripping.You have to analyze the deal 1) while you're living there 2) when you move out.

10) Knowing what to do if tenant is late on rent or doesn't pay.There's a lot more, but many here on BP self-manage and learn via "trial by fire".Of course, you can always hire a Property Management Company to handle it for you.