Now the situation has occurred that we need to rent the house out in order to help pay for his long term care expenses. 

This puts both you and them in an uncomfortable situation, as you are inferring that they didn’t already price it fairly.Don’t make a list of the flaws of the property and use that to try to talk the seller down.

To evict a tenant based on a lease violation such as hoarding would require you to notify them and then give them an opportunity to fix the situation.

I'd really appreciate hearing from you if you’ve been in a similar situation or have any insights.

if someone needs to borrow a few grand that's a pretty shaky situation.. 

And frankly in many instances depending on the situation it could be beneficial for the owner to let it go.. as they are entitle to the overages..

In some cases, after crunching the numbers, the profit margin was so slim—or even negative—that I had to pass on some promising opportunities.Here’s my situation: I currently own two properties—a primary residence and a rental property—both of which have substantial equity.

I don’t think that is the person this sort of situation is meant for.

>>For purposes of taxes, consult with a CPA to confirm this would work for your situation, but you could have the LLC be treated as a "disregarded entity" and thus, even if you and your wife are members, any profits/losses would "disregard" the LLC and go directly on your personal returns. 

You would have to go after the one individual for non-payment and you could only remove the other three by going through the legal process like you would for someone on a verbal agreement, which puts you in a he-said, she-said situation.