I have definitely been a little paralyzed trying to find the "perfect" deal over the last few months, so hearing that it talked about it a bit of a relief. 

I agree with everyone that you handled this perfectly and went out of your way to be nice.

(No)Bad choices here and hopefully you get away with it this time...next time be smarter and take care of your property first.

I love helping people find their perfect home or investment property, and I’m always happy to share what I’ve learned.

You broke it down perfectly for me to understand exactly what and where I am jumping into. 

No headaches of property management and if they default we get the property back (after a foreclosure of course), but it's gone perfect so far.

If you have decks and stairs, they need to be perfect.

If aren’t by able to find a suitable means before month 1 ends and your booking cancelation timeline then maybe you let them stay, but seeking someone who understands that offer or it perfectly fits could be a win win for you and them.

Multifamily DSCR Loans (https://www.biggerpockets.com/blog/multifamily-dscr-loans) would likely be a perfect fit for this but unfortunately are pretty much always capped at 10 units...

If this was your first year getting a 1099, then there might be a small chance that you could get away with just this year's 1099.....HOWEVER, since you have been 1099'd for 2 years now, then the mortgage lender may request tax returns before extending a mortgage.