I've been deliberating over the same issue (long-term rentals vs. medium-term rentals) and am inclined to invest the extra effort to manage a medium-term rental, given the appealing additional cash flow it promises.

We've had issues with Mario and his various business ventures. 

One of the tenants has been causing issues with other tenants.

The best part about Reno / Tahoe Nevada are it's landlord friendly, Real estate taxes don’t reassess on the sale, insurance is low and we continue to have increased in migration, jobs (no state income tax) and our own land constraint issues which prevent the market from getting overbuilt. 

If I cashout refi one property , that would resolve my debt issues, but I'm torn.

Maybe print the pricing off of their website and keep it as well in case there is an issue down the road."

Navigating these from a distance can be more challenging.Market Risk: You might not be as immediately aware of changes in the market dynamics, and reacting to market shifts can be more challenging when you're not physically present.Travel Costs and Time: Visiting your property or dealing with issues may require more time and resources, especially if it's a considerable distance away.In summary, investing out-of-state offers the potential for diversification and higher returns, but it requires careful planning, reliance on local experts, and a willingness to adapt to different market dynamics.

I'd look for the current status of the property's inspections, such as the fire marshal, the health department, social services, etc. - as well as checking with the local municipality for any building or zoning infractions.

Too many potential issues with the younger crowd.

For the access issue into the backyard: can't you just add a gate or a door or both?