@Randy Buff Since someone bought it at close to the asking price , thats what it was worth .

I need some gentle guidence as a start in what direction to go to find out foreclosure costs.My JV partner and I own a note and the borrower has defaulted and not paid in several months.

However, beyond giving this group an opportunity to do the right thing (I responded with appreciation for the transparency, the only 2 questions we're allowed to legally ask, and a gentle reminder that we are a dog-friendly property and it's a minimal cost of $20 per night), is there a better way to handle this?

@Randy Buff thanks for taking the time to type this up, very thorough! 

Gently let them know that if they continue to use the HVAC in this manner and it causes the unit to fail, they will be responsible for replacing it due to negligence. 

It is fine to take a gentle approach when talking to them, but those provisions are in your lease for a reason.

Bringing the $750 Tenant to the Real WorldAs for your tenant enjoying their $750-a-month sweet deal, it's time for a gentle reality check.

And they are being very kind and gentle with their thoughts etc..

I found myself missing out on more fun occasions than I'd like to admit because I needed to be at my properties handling some issue or showing it when vacant.I found that I had become conditioned by the sound of my phone (even though I helped alleviate it by having quiet hours on my phone from 7:30pm - 08:00am). 95% of the time when a tenant contacted me, it meant something was broken, there was an argument, or there was an excuse about late rent.My husband has been gently pushing me to get a PM for a while.

Super rookie here so be gentle...I am exploring the option for a possible rent-to-own situation.