My financial advisor has highly encouraged me to not do any REI right now, and to pay off the loans, apply for PSLF, etc.

After you check reviews (usually not many of them, so rarely helpful) and get referrals (the best thing), I'd encourage you to put more of your focus in learning how to do thorough due diligence on the properties, not the providers.

For example:Monthly rent = $600Monthly utility fee of $97 collected with rent each month.This keeps your monthly rent at a lower rate while still disclosing to the tenant that the utility fee amount will be collected.In general in the future as you look to grow your investments that aren't house-hacks I'd encourage you to not pay utilities on behalf of the tenants unless the market demands it. 

That should be enough to cover your downside risk as well as encourage the tenant to start complying with the HOA rules & regs.

We've always encouraged investors to approach the vacation rental business in a well capitalized manner, and this incident will only strengthen that position.

Most of the jurisdictions encourage such ADU unit development these days.

@Quinn Konitshek Thank you for the encouragement, will keep at it and see what happens! 

If you sell, there are tax consequences with it that I would encourage you to talk to a CPA about.  

I would HIGHLY encourage you to not go it alone.  

I found the BP podcast with Erin Helle to be pretty informative and encouraging with respect to Clarksville.https://www.biggerpockets.com/blog/biggerpockets-podcast-372-erin-helle