The breed insurance exclusion will give you a reasonable justification, but it could still get messy if they pursue legal action.Id dig into the true status of it being an ESA and if that pans out as "real" then its reasonable to require the tenant to carry liability insurance for the pet

Turn key rehab: $8K (cosmetic stuff - carpet, paint, appliances, new fixtures and landscaping)Cash-flow property for 5 or 7 years:Rent rates in this neighborhood are $1,800+, or $2,200 for mid-term, and $2,600 Co-livingExit strategy: Due to the 5 or 7 year appreciation cycle, your property is now worth $400K+ *calculators can do this now!

Any carpet in your house will be destroyed within two tenants.  

The one thing I will do to my units to make them more attractive to tenants is I will spend a little bit extra to put in slightly (but not extravagantly) nicer finishes ... things like brushed nickle hardware instead of brass or chrome, laminate floors instead of carpets, etc. and keep my units in good condition ... therefore, even if I charge market rent it is a good deal since my units have slightly nicer finishes ... if I take pride in my units and they are in good locations, then I find it will attract quality tenants who will also take care of my units, and no they do not leave when I raise rents up to the max the market will bear.

Do you really want to bring prospective buyers into a messy home?

I think the carpets were installed in the 20's. 

Inform them they may be responsible for any smoking remediation that needs to be done on their move-out, such as carpet and curtain cleaning, painting, etc if there is a smoking odor or residue.3.

Second, and probably less messy, issue a notice of non-renewal as he obviously doesn’t care about the rules.

Garage seems like a better place.We had to do several layers of paint and new carpet.

Hauled out the trash, stripped the carpets, kilzed everything.