Quote from @David Eyal: This is actually very simple: don't get involved in personal issues.You offer them a renewal.

you mention the person who is complaining is now and living in an efficiency unit (to me that has everything in it-ie fridge, stove). 

I will say that if you get some ducks in a row, things like a good cleaner, handy person etc, you could manage from farther away if you find a deal or area you are interested in.

We took this approach because even though the house is an STR it is also one we want to use as a family a couple times per year, and we feel we have our own personality as hosts, so we were particular about what we wanted. 

I  would look at your town regulations and see also if they have any unrelated persons ordinances and what they say about boarding houses. 

They have 20 different products and can help you out of most situations.

I gave them a lease in person to review and sign (I gave them the lease first as they mostly speak Spanish and the lease is in English, so I wanted to give them the time to read it).

Unless there is an offer deadline, I personally think order of offers has influence on sellers.

But it's tough work and doesn't always pay off.I personally think the big profit is in new development or a project.So, I'm wondering: Is starting something new a better bet? 

@Braden Heard start farming & growing your personal network to find deals that you can start out wholesaling, then flipping, then buy & hold as rentals to build wealth.Per this NY Times article, the average American knows around 600 people.https://www.nytimes.com/2013/02/19/science/the-average-american-knows-how-many-people.html#:~:text=The%20average%20American%20knows%20about,do%20you%20know%20named%20Kevin%3FPer the US Census Bureau, the average American moves 11.7 time in their life, which based upon an approximate lifespan of 84 years, works out to be about every 7 years.https://www.census.gov/topics/population/migration/guidance/calculating-migration-expectancy.html#:~:text=Using%202007%20ACS%20data%2C%20it,one%20move%20per%20single%20yearSo, if the average American knows 600 people and they each move about every 7 years, that means that the average American knows around 85 people that move in any given year.How many of those moves do you want to be involved in?