We allowed the family an extra 4-5 weeks to move out and then we started the renovation.

Seeing the numbers and the math makes refinance a little bit more clear to understand.So pretty much, the new 154K loan that we receive is used to pay off our original hard money 140K loan, leaving us with a little extra cash (14K) for ourselves.

I would allow their lease to expire and replace them with new tenants if they are unwilling to pay the increased amount, which at an extra $300/month I highly doubt they would. 

Ex 1 bedroom, $1150/month, for a limited time 1st month free and garage parking included at no extra cost when availability lasts! 

I'd say pick a hobby you are passionate about and figure out a way to make money while doing it for extra cash. 

However youre right with that you see an extra cost for management, lawncare, etc.

I know it'll take that extra time from you but as someone who is always looking to grow this type of feedback (also positive feedbacks) are what makes us really know where/on who to put more efforts in.We are definitely not a lone wolf or a pushover.

I will take Gregs and your advice and plan to place the extra funds in my interest-bearing account.

It is now more crucial than ever to try and work with your tenants, maybe offer them cash for keys if necessary, maybe consider working a side job for extra income...

And if it needs an extra 20k of work, make sure you budget for that.