Understood I made a bad move here as this was first investment so didnt think much except at the location for longterm growth or possibly I move there as part relocation.

Then moved into building and selling and keeping spec houses as rentals in AZ. 

By moving a portion of your mortgage balance to a revolving line of credit (HELOC, etc.) you can accomplish exactly that.

I would get that done before any tenant moves into the basement.

@Alejandro Martinez I'm a fellow Canadian from just down the QEW from you (Hamilton) and moved to Orlando just over 5 years ago to invest in real estate full-time. 

It is done without prejudice and is simply a parting of the ways (eg tenant wants to move to another place, landlord wants to sell the property). 

Understand risk/reward in how you move on that, and how comfortable you're keeping yourself.

It also is helpful to have a California LLC in case you ever sell that property and move into another state so that you do not need to form a new LLC altogether with new operating agreement, just re-register in the new state as a new foreign LLC.

Moving forward since I know the rules I will not copy and paste.

This tenant is a problem tenant and should move on somewhere else.