I may have sounded a bit harsh, but geeez, thoughts get pretty wild here. :)

It seems I misunderstood you, sorry for the harsh response.

You also have to consider that many of these cheaper houses are very old, and Indy has some harsh, harsh winters, unlike any that we see in CA.   

That's pretty harsh in Maryland.

First thing is I think it would be kind of harsh to say someone is an "idiot" for getting in an overleveraged position.

I actually called Citi Mortgage this morning too and was told that they will only do #5 - #10 if it is a primary residence, not an investment property. ...That sounds SO retarded - like anybody (other than some movie star / jet setter) would need to live in properties 5 through 10 ...When you talk to them use the idea I'm pointing out, just don't word it as harshly!

That may sound a bit harsh (which it is not meant to be) but if you enter into contracts in a country where you don’t speak the language and won’t/can’t learn to speak the native language to a bare minimum standard, you are taking additional risks by doing business knowingly and cannot come back later and say you didn’t understand.

I would get a professional to do it.I have seen tenants get paint all over the carpet,hardwoods floors,counters,etc.I have seen them ruin vents,not tape over electrical outlets and plugs etc.Ruined some of the switches and had to be replaced.The can improperly dispose of the paint and chemicals as well causing a liability.The fact that they have been there 3 years is worth something.Maybe you could have them extend the lease more in exchange for painting the unit or slightly up the monthly rent or you could ask for a paint deposit to be held and if upon move out it's not changed back to white walls you keep the deposit.

There are generous credits and deductions that most likely will reduce the federal tax liability; however, the tax is upwards of 40% and estate tax could be different (more harsh) for your state. 

Companies that use Termidor, will drill holes along the foundation in your basement about every 12" and pump the chemical down into the ground, they sometimes also do the block.