Intentionally gut shooting an animal to let it bleed out could land you in jail, and rightfully so. That has to be the worst, most unethical advice I have ever heard from a "hunter".
Contact your Department of Wildlife and see what help or resources they can provide. Like MtnCreek said, your best bet is to take away his reason for coming around. Take away his food source and he will go somewhere else. Now if he does get in your house there is nothing wrong with defending yourself with say a 12ga, 357 or the like.
Edit:
Even if the neighbors don't clean up if you take away the reasons for him to come by your place he will.
__________________