Not sure if it covers your area or not, but it's a good start even if it doesn't.Find out if your area does them in person or online. 

A current landlord may want this tenant out and be willing to give a good reference to suit their own interests.

Most Hard Money Lender's will lend to new investors as long as the deal makes sense.

There was a pre-move out inspection where everything was determined to be in good condition and there were no deductions that would be made.

Good to know.

We know being an landlord is a job, but if we hold it for long time, it can be a decent income.However, now we are thinking since the interest rate for our sfh is 6.375%, why not sell the townhouse and pay the principal of sfh?

Anyone have insight on these being better markets for traditional long term rentals vs. 30 day minimum extended stays / MTRs?

I asked for small down payments and provided relatively long term loans (10 years).

It’s just a matter of how long we’re willing to stick it out after 6 and 8 years because the highs and lows of the market wear on you something fierce and how quickly we can drop the stress of that by investing as strategically as possible without overextending ourselves. 

The fact they are willing to pay $200 extra also indicates they have had a tough time renting other places, aka other landlords have told them no.I would lower the rent and find a good tenant before I did this, but that’s just me.