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Will, it sounds like you are handling it well so far and with prudence.
Calling the cops would be good because at least you can get documentation and start a paper trail. If you can, start a neighbor hood watch (in pairs at least) to continue monitoring and continue a paper trail. If you document the comings and goings, you will at least have something to use to give the police or court if it came down to it. Also notifying the police is good to show that you are doing everything by the book.
I like your approach of firm but polite (friendly). I too, would be concerned about inviting backlash. Continue the "killing with kindness approach" and stay firm.
Another option is to install cameras to reinforce your neighborhood watch.
All these things taken together can be quite effective I think.
Presence is effective. The more neighbors that gather outdoors together, he more of a presence you will build and the unwelcome guests will leave naturally.
I don't think you should buy them lunch, that would be overkill.
What about hiring a security guard?
Good luck!
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