With long term rentals (or any house aside from a flip), you are unlikely to make money off the sale of the home if you have only owned it for 2 years after you pay the realtors and other fees.

You can also hold money for maintenance, capex, taxes, insurance, or other projected expenses.

The easy money is gone.

However, the money I’d save by not paying $3500/month mortgage is $42,000 after 12 months – thus recovering the money paid on the capital gains tax.QUESTION: would you advise selling the rental to pay off the new home and take the $1400/month rental income loss (and gain $3500/month savings) or would you advise keeping the rental?

My wife and I are both teachers and I also coach three sports to help make more money. 

How much risk of losing the green card and being deported do you want to take?

If this tenant doesn't move out, I risk postponing the close date, and losing money on the mortgage every month this situation drags on.

Make sure you have the money buttoned down and let the buyer know that it is secure and meets their timeline.

You could be sued for $11,200 and if so, you would lose.

They have worked for money and appreciate it.