According to your agreement with him, he is a tenant and I would treat it like if any other tenant "living in the property" asked to be taken off their lease.

Luckily, using Kilz on it to seal it can fix it (same with wood); you might also treat with a urine remover product (spray on, let soak in and dry).Downside - an extra day for painting and letting it dry, before putting in new carpet.

I could then get a person in here with the intent to purchase my home which would incline them to treat this house like their own.

On top of typically needing at minimum first months rent and a security deposit.In my experience, if you communicate your intentions early, and treat people with respect, you won't have many issues. 

I treated this search once a week for two months to see the progression of bookings.The hard part is you have to scrape available data which means Unbooked houses.

My other question is will the banks treat your rental income as a steady stream or will they discount it.

But I would suggest waiting the 6 month seasoning period to get your money back or have a contractor give you a bid of say ( that 25K prior to closing on the property and the money be held with escrow) Now what I like about leaving it because you can cash flow a lot more money and they treat is as rate and term.

Treat it as a training exercise.

But we live in a "kinder, gentler" world now where the bad guys have to be treated nice.

I've always treated my own credit cards like cash and paid them off in full each month, so I really have trouble understanding why/how someone could have such a big balance and just keep paying the minimum payment for years on end.And I'm also concerned about his 80k student loans and what it means when he starts paying them late this year.