If it hasn't caused any major problems and does make s*** run uphill, I would monitor and let it be unless you just want to fix it and not have to think about it again.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processesWe recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

I don’t mind doing a cash out refi 6 months later but I really hate doing that cause it’s 2x closing costs in a 6 month span, and that’s not as ideal.  

A good tenant is someone who:Has stable employment in a market segment that is very likely to be stable or improve over timeHas a credit history with which you can evaluate the likelihood that they will performPays all the rent on scheduleTakes care of the propertyDoes not cause problems with neighborsDoes not engage in illegal activities while on the propertyStays for many yearsThe right tenant pool is so important that I would interview multiple local property managers to validate the tenant pool selection.

Second, I 100% would not lie for them especially when they're trying to get out of their lease early, essentially causing you to lose one months rent.

But I was wondering if having another house under my name would cause any legal issues?

But I was wondering if having another house under my name would cause any legal issues?

Good people who have very few housing options are *very* likely to stay, pay rent, and cause no problems. 

The new single family home construction will likely cause some appreciation in the value of the duplex, but the housing type is different, so it might not be a whole lot.

Obviously, these are long-term improvements on the property, but they were caused by a vacancy.