I'll look past speeding tickets or a DUI, maybe possession if it was just weed but I have my hard no's. 

I've had break ins, doors kicked in, windows broken, wiring stolen out of the wall, landscaping missing, squatters, crack pipes and crack pots, dog bites, people talking to non-existent listeners, lots of people with all of their worldly possessions in stolen shopping carts passing by, extension cords thrown over the fench and attached to my outside outlet, hoses attached to my water, refrigerator stolen, shootings, lots & lots of helicopters overhead, and I've gotten to know a few Phoenix police on a personal basis.

See Adverse Possession."

Even if the police tell you that a tenant is committing a drug Offense, under Ohio law you could them immediate 3 day notice for drugs but  you'd still have to go through the court eviction process if they they didn't just move out on their own (even if the police took them off to jail, you'd have to go through the eviction process to legally get back possession of your unit).

You will have to request the court to get possession back and that won't happen until after the court decides who deseves possession.

As for squatters rights, barring being in a city that protects them somehow, it is likely there is no lease involved, so the holdover ‘squatter’ has no special rights to possess the unit.  

@Randall E Collins First of all, if you've truly been putting in consistent action for a year with no results, be proud of yourself as that takes more tenacity than most people possess.

Seems there are over 4,000 STRs in Scottsdale alone, not counting the rest of AZ and some neighbors believe that is infringing on their right to quiet possession.

If she is in possession, she strengthens her argumentI would also certainly follow through and exercise my rights regarding being illegally locked out. 

However, if the contract was broken, the repayment would automatically kick in.Carolyn, this is really a legal question and since lawyers don't post on website message boards, you won't find a valid answer here (only opinions).Go talk to a lawyer experienced in this subject.Reading between the lines, if I were in your shoes and wanted to make this loan, I would require collateral and take possession of the same to assure repayment.