College kids come in all sorts of types from the top ramen eating shoe string budget to the kids of wealthy parents who send their kids to college with a credit card that they pay.

Obviously the safe thing would be to live in it the 2 years prior to sale to get the tax free gain.If I were in your shoes and did not want the hassle and headache from a 76 year old rental house I would sell, especially since others in California concur. 

I know this may pop a red flag for the buyer but how much would that affect you if you were in his shoes?

Now that you know your tenant is affecting the quality of life of the next door neighbor, which is a public nuisance if I remember the law class correctly, and you have a duty to take care of it.But, this is what I'd do in your shoes, to try and keep your neighbor from suing you.  

If I'm renting your house and find myself in their shoes, I'm asking the landlord if I can buy some seed and straw and deduct it from my rent, especially if I have kids. 

You basically step into the shoes of the current landlord.  

You basically just step into the shoes of the previous landlord and the contract continues.  

I usually get shoe molding from home depot website because it's only about $2 for an 8' stick. 

You could have to pay her court fees to sue you if the judge rules against you.But, in your shoes, I'd do as you plan to, since you are there in WA, and it wouldn't be too burdensome to go to court if she files.

If you do decide to continue being a landlord, it sounds as though you could use some advice about how to screen tenants, but your plan to sell the property is probably a better idea; it's hard enough to manage property that's close to home, never mind one that's so far away.Best of luck with it and good for you, coming to BP for advice...most of us have been in your shoes and we're all rooting for you!