Tenant trouble

Recently acquired a duplex with one existing (tenant 1) vacant and one empty space. Last week, i received a call from a new tenant (tenant 2) that moved into the empty space reporting of a shooting that occurred in the early morning. When i arrived at the duplex, there was several bullet holes on the door, window and siding of tenant 1. I was also informed by neighbor across the street that in December there was disturbance with tenant 1 where people showed up and street fight etc... Btw tenant 2 moved out because they felt unsafe and have a couple month old kid. Tenant 1 has also said they feel unsafe and want to move out but i don't think they are serious. Is tenant 1 responsible for the damage to property? This is probably not going to be the last time there will be such damage to the property. How to deal with this situation?

You need to check in several places to see what your rights as the owner/landlord are and what the rights of the tenant are.
1. Start with the signed lease. What does it say about disturbances by guests of the tenant?
2. Call your local Magistrate or the Judge who handles eviction cases and ask them for local advice.
3. Check your state laws on tenant/landlord responsibilities.

These vary from state to state, county to county. It's difficult to give advice unless one of us is in your city.

My lease states tenants are responsible for their guests, invited or uninvited. If the people who shot up the duplex came there because they know the tenant, that's a start.

The lease is where you will find your answer.

Yes, check your lease. However, it seems to me that Tenant 1 is definitely responsible for the cost of repairs (in my experience I have always charged back for the costs) and issue a 30-day Quit or Cure for disturbing the peaceful and quiet enjoyment of Tenant 2 (especially and even though they have moved. You will need to re-rent and this extends notice to Tenant 1 you cannot have that behavior ever.) I would NOT renew them. You should also get copies of all police reports pertaining to that address since they moved in. Document everything, take photos and start your file for eviction/court/non-renewal.