I'd encourage you to at least attempt a negotiation.

@Sean McCluskey others have made the point too, but I’d encourage you to consider the full picture.

I would encourage you to right down you plan and goals.

It provides very little financial support and, unfortunately, encourages many to ignore funding a retirement, thus creating social insecurity.

Either this is business or it's not.Surely yours isn't the only duplex in town he could develop an attachment for...I recommend you encourage him to live somewhere (anywhere) else.

The best bet might be to ride it out and not renew, or encourage them to find someone else to replace them on their Lease if they don't like how you operate. 

Thank you for the encouragment, you are right about testing out of the first one at least.

My friend and client wrote a great blog post about his first real estate purchase and what he's looking to achieve through real estate investing and I wanted to share it here as an encouragement to the newbies and first timers out there. 

I am getting a home equity loan and my banker was encouraging me to pay off the houses I already own.

However, I would encourage you to network with the everyone here in the Austin area through local meet ups.