It only happened once, so you have no evidence that this is anything but an honest mistake that's been corrected.The bigger concern is the 583 credit score, because it shows a pattern of financial mismanagement.

If these are even an average sized breed they can eat through a lot of food in a day/week/month.So the first thing is to get yourself financially stable.

I'm glad I said I had to talk it over with my financial advisors. :) 

what kind of investment was/is this  a little more detail may protect others if you think this person is a financial predator.  

Bottom line, you have to decide how badly you want to own the place, and how much financial cushion you have, and how much risk you are willing to take. 

I’m also considering advising my tenant to look into Section 8 assistance, as it could help support their financial situation while allowing me to adjust the rent closer to market levels.

@Martti Eckert here's the big issue that no one really talks about that you hopefully find helpful (this is copy & pasted):-----------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

This approach will help minimize the potential financial risks associated with renovations and working with contractors.

If we had gone with more optimistic assumptions then it would have been a very disappointing year financially at least.Every market is unique. 

A STR is a completely different animal in my opinion, in that it requires more work and much more compromise, but financially is worth the effort.