As Jim so eloquently pointed out , there’s no honor in being a “car guy “ it took me a long time to learn this painful truth .

I know finding another place and moving is a pain, but find a new place already. 

I do have it in my lease that if they fail to maintain coverage I will buy it for them and charge them for it plus an administrative fee. 

Size and breed dependent, no viscous breeds, increased security deposit, a pet administration fee and possible additional pet rent added onto the base rent would be your best bet at mitigating your risks while keeping your applicant pool open.  

The trends I'm seeing from my day job (architect) is that construction is going to be a royal pain this year.

I would be losing about $300-400/mo by renting it out but this would at least take away a little of the pain of two mortgages until I can re-attempt selling it at a more prime time.

You may need to get zoning for Single Room Occupancy. it would be a pain and take a long time but probably feasible. 

i haven't looked recently at the advancements, but are there any alternatives to carpet people suggest, including hardwood, that don't create a noise problem.Also, since a rental, I wouldn't want it to be cost prohibitive.I also like the idea of something that is a bit less maintenance than a carpet which is sometimes a pain to clean, repair or replace when tenants move out.Thanks for any input!

You can get licensed and be the administrator yourself, but then you are just getting yourself into a job.

While this purchase was a lengthy and somewhat painful process, it was also a great learning experience.