You should follow your eviction proceedings when rent is unpaid.

Maybe with an FHA or VA Loan...........let it appreciate.....then refinance.....take the proceeds and buy in the midwest or the south for cashflow while still living in the househack.Repeat.

In the last 5 years, we've been sued in civil court 4 times for wrongful foreclosure for non-judicial foreclosures.

I would definitely recommend doing a cash out refinance and locking in a low 30 year fixed rate if you plan to use the proceeds for a downpayment on another rental or two.

Feel free to go to small claims court with your pre and post rental pictures. 

3)  When do folks expect eviction courts to return to "normal"?

For example, more LLCs are formed in Delaware than any other state, and for good reason: business friendly, does not tax out of state income, low filing fees and separate court called Chancery Court.Take some time to research the costs/benefits of different states and make the best decision that works best for you.

Any insights on how to proceed?

If you sell and split proceeds then you could each do what you wish.

Are you going to evict the tenant, tack late fees, take them to court?