You've sold the house - chalk it up to a loss -- You probably came out better anyways -- right now any affordable house in Wichita sells very very quickly and price appreciation is up for homes under a certain price range - I'd guess you gained far more by the timing of your sale with them leaving  when they did even though it wasn't under ideal circumstances.

If you were pulling $5k from your property its worth thinking about the cost.. but when you look at the circumstances big picture, or try to frame the circumstance as an investment itself.. it's a no brainer to me.

This is something you should discuss make sure to touch base with your CPA or Legal advisor about, personal circumstances and change how to best set things up. 

You did the right thing by not letting them in under any circumstances, if they had 2k today they could have had it earlier and prevented this mess. 

Centuries of neglect, years of indifference had caught up with us.

In the circumstance were in it isn’t possible at the moment.

But if the refinance is enough to cover your hard money loan and you come out with a rental property that breaks even, that sounds like a pretty sweet deal given the circumstance!

The property had been neglected for about 4 years but prior to that was really well maintained.

HOA contacted me - an accusation of tenants letting dogs leave a mess: "neglected to dispose of all waste from your pet".

There are a unique set of circumstances surrounding this goal though.