I'm not saying it's impossible, we just had a similar situation with a client and we were able to get him under contract, your agent will definitely need to know how to maneuver this issue and find ways to make your offer more enticing, whether is by waving contingencies, offer a higher down payment, etc, not saying these are the best ideas, but just some ideas to ponder. 

I realize this has been posted in multiple iterations before but hey, everyone's situation is unique!

@Peter StewartGood luck to you cleaning up this miserable situation and going on with your life and your landlording.

I fully intend to rent out several of the rooms, possibly in a Short Term situation through AirBnB type sites, some rooms to what I hope to be my daughters college friends that have Mom & Dad to foot the bill for them :) Aside from that using a small MultiFamily is a great idea as well as even doing a live in fix and flip, these are all ways to house hack and unless you just can't stomach having "roommates" or living next door to your tenants then I just can't see a downside. 

A couple years ago I helped my dad buy his soon to be retirement home, as it was a perfect situation and we couldn't pass it up.

Plus, we all fall on hard times occasionally, so perhaps the situation was just temporary and the tenant will have no issues paying the rent from here on out.

Now, the good tenants usually follow up and explain the situation and once they pay, tell them to just disregard the notice, and that it’s just part of the process, nothing personal. 

In Boulder County, most offices are doing sales or leasing,not both so it's a unique situation and I appreciate any insight/tips.

Where would you invest if in my situation?

A deposit is only for specific use in this situation.