And if in the future you were going to move and do the same thing you could possibly do a reverse exchange and have the 1031 intermediary take title to the house, sell your town home, and build and 1031 into the ADU before you take title and move into the main house. 

G'Day everyone,I've been living and running a turnkey company, property management company and brokerage in Ohio since 2014.Just packed the family and moved to Dallas 👍More of a lifestyle decision than anything else 😁Aussie Bushman get a long really well with Texas Cowboys so I thought "why not" lolAnd you gotta love the Dallas Love airport with direct flights to my beloved Sydney, Australia.I'm not necessarily looking at doing any deals in Dallas as my hands are full in Ohio but you never know what the cat will find.I'd love to meet with folks and learn more about the market for who ever is interested in sharing 🙏I'm an open book and happy to share all of my good, bad and ugly real estate stories over the last 13 years of my business career.I smoke 3-4 cigars a day (Cigar lounge?)

Personally I’d offer to terminate the lease early and get them to move out so I could re-rent ASAP to new tenants at market value.

New tentants moved in around the middle of January, they asked that a fence not be installed as they had no pets and they wanted their daughter to be able to ride her bike in the backyard.  

That's a smart move – the location sounds perfect for attracting tourists and outdoor enthusiasts.

At least upgrade to a spreadsheet and start tracking things the way your CPA wants.With five properties, I would consider moving to a CPA firm with staff and more than one set of eyes on your books.

Tenants paying 1650/mo for 2 bed unit, and we will rent the 3 bed out for 1750 when we move.

What would be the best way to move forward? 

However, the hard part is the expensive bay area entry price - even with the VA loan, it's still difficult to find places that makes sense for both while we house hack and when it's turned into investment property if we move.

Windows should be washed, but use your own judgement-if you were moving into the house and saw the windows would you be happy or not.