I think your reasoning is probably sound.

…Which I against the way they operating the business, because people will have more trouble in their life because of these.Overall there are many “Too good to be true” advertisement they published everywhere, but the reality after I used it, I just felt like not really is what it is sound like.

I would have a rental with 10% interest if it still cash flowed and met my criteria.With that said, you sell what sounds like your personal residence and then where do you go?

^^ it’s definitely not as easy as people make it sound.

Sounds like a horrible plan. 

Once the carpet has to be replaced that's when I'd instal the lvp

Do the numbers sound too close?

I need to replace my 2007 Toyota Tacoma with a newer work truck but I don’t have a credit score that will offer lending to purchase that truck.

Several states, and many cities and counties have source of income, ie, sec 8, as a protected class.However the op still should screen his tenants and it sounds like he did not. 

Yikes - that sounds like a horrible experience.Make sure that you collect any IRS / State notice that you receive with a penalty and forward it to them requesting reimbursement.Best of luck to you !