But apart from these things what else could I add to give my guest almost like a hotel feel.There are a lot of options, especially depending on the are in Tahoe.

What’s my best option for this type of property?

Jersey City is a good option and there are definitely more potential house hacks available in your surrounding area.

(Thus you would be taxed on the interest payments and whenever it gets paid off; but again, double check this with an accountant.)What might work better for you given what you're looking to do is a lease option. 

They have a county option that might be better but I didn't see prices on the properties there nor the addresses of them listed.

I am considering selling the place, but not sure if I should given that I have a 142K loan in place with pre-payment penalty, or if I should just see this eviction through and just try my hand at getting another tenant in there vs possible lease optioning the home out. 

You don't have many options.

I would like to know what are the options that I can use to be able to keep my property.

Also lease option purchase, which as Ken mentioned some are legal and some are not….

Or is there a better option to finance?