They call the health department and claim that this has been happening a month.

Again, getting paid $500/mo to live rent free and essentially run a hostel is probably way too much of a pain for most people, but I'm ok with this.

We considered doing a suite in the garage when we built it this past fall, but ultimately decided against it as it would be a pain in the butt to hook it up to the septic tanks and field (on the opposite side of the house) and bring in water.

The truth is owning property is a pain in the butt, if it's not a good deal that cash flows, there's really no point in having it. 

When I am dealing with a pain in the butt contractor or tenant those are the days I really am sick of it, when the rent check comes I am obviously in a different state of mind.

Ending up pain 3 times more during that time to get it fixed by a professional that's if you can get a hold of someone.

If they refuse, suck it up and go through the painful process of eviction so it's on their record, you get a judgment and (maybe) get some money back, and both you and the tenant learn some valuable lessons so this doesn't happen again in the future.This will teach you a valuable lesson that (hopefully) will encourage you to be more vigilant in screening and lease enforcement instead of letting problems get so bad that you have to evict.

I definitely dont want to possibly have to go through all that pain in the butt to end up only getting back one of the properties in a worst case scenario!  

It would be a pain to be having to move everything from room to room.

The first deals are slow, painfully slow, and then if you treat people right and keep consistently working, you end up with more opportunities than you can juggle without scaling up.