The first option will give you continuous headaches with a certain likelihood that the behavior may get worse (not paying at all and more damage).

Meanwhile, explore options with other STR PMs. 

Unless maybe you have an option on the purchase of the real estate or something.

(This option would would not carry any debt, all debt would be paid in cash)Or keep our current house, rent it out, and cash flow NET monthly about $1,500?

Home prices have decreased over the last 18 months so there is lack of good options and values still above normal. 

They won't always be upfront about this with you but if know they're selling because they want to retire, that opens you up to different options vs if they're an investor just selling for profit.

Best of luck and if you ever want to brainstorm options, happy to chat!

I was their best option.

A good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.I recommend finding an accountant who specializes in real estate taxation, business taxation, financial planning and tax planning.You may want to consider working with your accountant remotely to expand your options.I would also recommend looking for a accountant willing to work with you throughout the year.

Here’s an example of bonus depreciation.WHAT IS THE COST OF A COST SEGREGATION STUDY?