How can I optimize my situation to be at least break even or, even is short term like air bnbs andvacasas reay good?

If they violate it again, demand they remove the animal or terminate the lease and leave.Assistance animals are not allowed to damage the home, poop in public spaces, run loose, intimidate or attack others, etc.

For example, California has a TDS and SPQ, basically tells the buyer exactly what is going on with the house, and the seller needs to disclose or the buyer can come after them for damages.. 

All that's due is the security deposit, for you to return as long as no damages to the property. 

Insurance protects both you and the lender from potential losses due to damage or liability issues.

America has the 3 enlightenment Pillars that are true Civilization. 1) Rule of Law, 2) Freedom of speech/conscience, and 3) One life One voteThese 3 ideas are the air we breathe and water in which we swim, and give rise to actual and enforceable property rights, which allows for people to safely save, safely invest, safely create, and safely live a full and expressed life.

Landlord can require tenants to be responsible for separately metered utilities, so can avoid waste.Landlord can get annual small increases in rent.NegativesMost of us don’t treat something we get for free the same way we treat something we’ve worked hard to obtain.S8 applicants claim “broke” and don’t like to pay application feesSame goes for security depositsS8 tenants, in our experience, tend to cause more property damage than non-S8 tenants. - Make sure you get a security deposit and perhaps do a surprise inspection of their current home.S8 requires an inspection (mostly health & safety) before approving a lease and then annually thereafter. - Not something most landlords taking care of their properties have to worry about.There are limits to clauses they allow in your lease.

and throw it at our principle on our SD property.I’d prefer to 1031 the property or Air B and B it . 

This could manifest itself in additional damages and financial losses when they decide they don't want to put up with you any more.Also, Section 8 does require more work setting up, renewing, increasing rent, etc.

When he vacated the property and returned to his home state, he left under hostile circumstances and left significant damage at the house.