I would still need to subscribe to a streaming service for cable tv, so cost savings wouldnt be much (or a wash), but otherwise it seems like it might be a viable alternative?

And while a 1031 exchange isn’t an option, some people explore alternatives like installment sales to spread out taxes or even tweaking the investment structure so your returns are treated as interest instead of equity.There are definitely some creative strategies out there. 

Alternative is the sherif evicts him and I pay tax and insurance.I know we can have a gentleman's agreement on these things, but im still afraid he might be able to legally sue me if we have a legitimate residential lease?

This means that someone who makes $43,000/year would now eligible to buy this room condo, and have access to a vehicle through which to build equity in an asset as an alternative to paying rent. 

Hey @Jordan Northrup check out Buildium, it may be a decent alternative and fit the bill for what you're looking for.

For BRRRR investors: Are you rethinking cash-out refi strategies or exploring alternative rent models to make deals work?

Alternatively, refinancing might give you access to some of your equity without completely exiting.

Alternatively, you would need to drop your rents by $500 or more to have the same impact on your cashflow and your value.

Hopefully helpful as you start looking around the market, as the only other alternative is to buy cash!

Before I order a second appraisal, I would investigate an alternative lender.