@Nico Burgess, again, this is all personal choice. 

You have  choice of not getting it, but you better have someone on your team who is as invested as you are in your business with MLS access.

Hardmoney loans have high interest, so I don't see it being beneficial to use that if I can't get the tenants out. 

It seems to me that the ability to discus the price of offers would be beneficial to all parties but I’m also curious if this issue is a state by state thing as well?

Our goal is to get a home as soon as we can afford it, what would be the best choice and pros and cons.

According to her financial situation, is it more beneficial or her, from tax point of view, to have the unit vacant rather than renting to a irresponsible tenant?

Transfer of the property of Beneficial Interest in Borrower.

The proper goal of charity is not to give (and virtue signal one's giving) but to see that the gift has some beneficial effect.   

We left one room open by choice to take things slowly, but we plan on filling it soon.We were able to fill the 4 rooms before our first mortgage payment and our tenants all signed 6-month leases.We collect $3210 in rent every month and pay our own utilities, so we cashflow about $300-$400 while living in our own home.If we rented out the final room ($800) and included our rent savings ($800), we could essentially be getting paid ~$2K a month to live 10 min from downtown Denver.Don’t let people scare you.

It is a conscious choice you have to make with your wife that things could get rough but you both are committed to working thru it.