We also showed our choices for outdoor landscaping at this event and how we did all the outdoor area and made them look amazing for under $3,000!  

Rehashing age old arguments without actually thinking about the reasoning behind those arguments will lead to a less beneficial conversation.My position is, while I understand the benefits of leverage, cash is a much better choice in this scenario.

Otherwise you need to make the choice to remove him if he will not remove the dog.

Since this is my first real "move" in investing I am trying to make the best choice. 

It's a tough choice, but either way I think you'll be in a good position.

Given that you will still have a walk-in closet to offer, the bathroom would be my choice to enlarge.

If no, then maybe the real lesson is that the deal was too skinny to begin with, also a good learning, and in reality all you've done is pay an opportunity cost versus the next best investment choice you could've made with that money.Of course the other option is to just beat yourself up, but that only robs us of the learning opportunity and leaves us feeling bad about yourselves, which in my experience neither produces success nor happiness, both of which I'm assuming are your goals.

- Good Luck and make the right choice.

I understand that with landlording (house hacking or otherwise), my personal preferences of lifestyle choice don't matter. 

I guess that's a way to ask how to become financially independent or to have time freedom, options, choices, etc but i doubt many asking know their deep why.