If they do it outside and do it recreationally and not in absurd quantities, it will air out in minutes. 

I've had many renters with kids that stapled posters to walls and left hundreds of tiny holes.

They have a bigger single family home and a tiny home on the property, but there close proximity and shared driveway present functional problems that are undesirable for guests. 

The only taxes I remit directly now are the tiny town tax they implemented of 1%.I just take my net income spreadsheet and calculate the 1% and give them a check.

Quality over quantity for me. 

But if you're willing to take a tiny leap of faith, I think the returns are solid, the diligence and the integrity are there, and the states/markets/submarkets and the asset class are thumbs-up.

We'll lose money for 75-90 days but the new rent is market so some will stay and not forcing people that can't afford it to move in the middle of a very cold winter I think buys a tiny bit of good will and is the decent thing to do.

Quality over quantity is a ridiculously underrated point on here, despite some of us stating this ad nauseum. 

And one point the OP made about their credit.. only gurus talk about that.. by the time someone is days away from foreclosure their credit is trashed  having it actually go to sale will hurt a tiny bit .. but your not saving anything. 

Maybe some easy refreshing of the mortar but I would also plan on digging down for better waterproofing.Now, no way I would build a tiny little place on that lot.