Don't spend a lot on improvements as they tend to get damaged with every tenant.  

I would recommend having the property assessed for any damages—were the windows or doors damaged during the forced entry? 

@Jennie Berger The RS-3 Zone allows for Single-Family residences & 2-Flats as "Permitted Uses"; however, the RS-3 Zone still requires 2,500 sq.ft. of lot area per unit (i.e. 5,000 sq.ft. for a 2-flat) unless the lot meets the exception for the characteristic of the block as previously mentioned by Nicolas; then it can be reduced to 1,500 sq.ft. per unit in order to construct a 2-flat.

Its about 8 blocks from the football stadium.  

In July of last year a roof leak developed and caused damage to the ceiling in my unit, to the point there was partial ceiling collapse. 

The guests have a credit card on file and your policy should allow you to charge for damages or excessive cleaning.

Turns out, the previous owner did take many steps to mitigate the moisture damage and the home was very dry and mold free when we acquired it.

Give her 30 days notice now, keep her security deposit, and send her a additional bill for damages to the unit in lieu of taking her to court for the damages.  

I currently live Levittown and a house around the block from me is on the market for 1.5m.

The tenant understands that the property of the Tenant is not insured by the landlord for damage or loss of any kind (action of third party, fire, water, theft, vandalism, storm, heat or cold, electrical damage, pests, mold, accident, etc.), and the Landlord assumes no liability for such loss.