If the latter, simply give her the notice required (eg 30 or 60 days) that she needs to move. 

This would be the safest approach but also, anyone that is worried or has extra strict oversight in their area could simply avoid anything alcohol related in their packages.

Especially now, I am seeing a lot of people who bought during or right after the COVID pandemic and are in situations where they simply cannot sell their homes for any profit (many of them bought as new construction).

No attempts to "pull one over" on anyone here--in fact this deal and partnership idea were brought to me by the other would-be investors (including the deal finder), because they're interested in making it possible for my wife and I to move closer to them (currently living in different states).

Generally there are multiple units for each "zone" if you will when I've seen them installed.Regarding your problem at hand, I personally would simply adjust your plan to move and make your initial plan to get the current issues resolved, while costly now, in the long run holding onto the unit will likely pay off. 

As far as I know, they no longer do arbitrage after losing a significant amount of money attempting to make it work. 

I think the folks that pay for these programs have the wherewithal to simply cut a check and its no big expense to them compared to what they stand to get out of it. 

Non paying tenants(as a newbie I did no screening), dead tenants, Silly fines from the city for nothing, attempted robberies where I ended up with the cops pulled guns on me. 30 recently released convicts as neighbors for a while, a jacked up 7' tall transvestite call girl/drug dealer was my least favorite neighbor.

Eminent domain does not work that easily or simply. 

Simply fire them and hire someone else.