You would likely use the proceeds to pay off the HML, leaving you with a new mortgage (which you paid to get) and a HELOC payment (and possibly a residual balance with the HML). 

If they were paying market rent, things may be slightly more palatable. 

If you don't plan on filing a claim unless its at least 5k, why pay a premium for a smaller deductible?

They may collect enough extra ent to pay for themselves and give you a better selection of tenants.

Worst case, you pay for the eviction and get rid of the headache.

I’d be happy to connect and run the property by some developers and investors I work closely with to see what price they would be willing to pay.

The property is listed with a licensed professional real estate agent with an in-house network and a network with the MLS service, Realtor.com nationwide, and perhaps a number of other sites.  

And i chose a 4 plex because it seemed like the smartest play. the 3 units that I am renting out pay for the mortgage.

Who is paying for the damage to your unit? 

If so, you purposely DON’T want it to be a business you want it to be your primary home for 2 years so that you pay zero taxes.