I have a multi that sits next to a city parking lot- drivers keep backing up into my yard's fence and destroying it.  

If you own the land what can they destroy?  

The Giannasca Group was supposed to renovate it for $120 million and convert it to a 197-unit condominium tower but hurricane Katrina destroyed that.There is no one in there and it seems like its invisible because there no one fixing it or even worried about it.

We have had very little capex because we've given up on bringing them up to a higher standard (too many things destroyed).  

The tenants in this area will destroy it. 

The lender/bank are willing to negotiate the note since they do not have it although they can make an emotion in court and swear under penalty that the note was destroyed and can not be found but they are the original note holder and promising that no one will claim the property in years to come as the note holder other than them.

However, worried I'll regret not selling at what some people claim is the top of the market and then losing my tax benefits of this being my primary residence and being left with a house destroyed by tenants.Any advice, ideas, stories, or thoughts would be greatly appreciated!

The unexpected cost to us will be about $400 for a deep cleaning, trash removal, and some towels they destroyed. 

I had a previous tenant with a dog destroy everything in the home and I had to replace all the furniture, queen sleeper, mattress, bedding, linens, area rugs, flooring, so I am really leery about renting to people with pets now.

@James Wise  What was described above is simply life in the rental bizz  no amount of up front screening etc will keep you 100% immune from peoples lives.. as lives change.I had 11 A class ( new builds ) in Jackson MS area.. and by and large they were great I could self manage those ( self being my secretary managed for me).. but even there on brand new 200k homes I had one completely destroyed.. 50k in damage... and luckily the insurance company covered it and went after the tenant for criminal charges... as you know normal turn over damage is not covered with insurance.. then I have owned C class Section 8 with the same tenant for 8 to 10 years.. just like many others.. its one reason I subscribe to the thought process no matter what were or how.. you want some scale if you want to be in the rental business.. however you can do it get to at least 10 doors as quick as possible.. that way one bummer does not sink the ship.