But my wife mainly feels that we have had enough and with a newborn daughter around, want me to be present mentally around.

It will depend on your ability, mentally, to separate the two from eachother. 

I dont see how this city is going to turn around if the mentality of the people don't change or some fresh blood comes in.

I've seen many put all of these things together and just expect business to land in their lap with a "If you build it, they will come" sort of mentality.

I'm losing a great tenant because of this neighbor, & I'm afraid of this situation happening again if I re-rent.I suspect the neighbor has a mental health issue. 

For example the mental leap from raising rent $100 was that the kids could become homeless.Even if they did need the money, not sure that would be the deciding factor in what they chose to do.

I have witnessed countless individuals fall victim to the pitfalls of mental accounting when it comes to their property investments.

I am not saying that you have a bad idea, but I do just want to make sure you are mentally prepared to take on this financial obligation. 

You can find an exhaustive collection of state eviction and security deposit laws on our parent company's website.

Keep in mind that sellers make a mental judgement as to the purchaser, so offers that they consider ridiculous will probably not get a response.