Tenant has endless list of demands and we might end up in court.

Her rent was originally $950. a month down to $850. for the repair agreement and the last check deposited we got was for $600.And she is threatening me to sit in the house until we give her a Court Order! 

Abou;I have experience in buying distress 8 unit with two tenets.The 1st thing I did was to visit each unit make detailed notes as to what was needed to bring that apartment back to life to attract the higher end renter.Than, inspected the foundation and the roof, attic, common areas, went to court house looked up records on property, spoke to building inspector,They usually have some inside info on things that nobody else has.While doing the above, find out what is market rent is, this will help determined cash flow after repairs.What I did to get renters in, as soon as I finished remodeling an apartment I started advertising for rent with a lower rent rate then others in the market, the idea is to get her fixed up and all unites occupied, as soon as that happens you can start raising the rent. 

This will create difficulties in the event of a bad breakup, as one of you will be able to block the sale requiring a partition action in court. 

We decided it wasn't worth taking her to court over.

It can be fought in court after they move out.  

You ok with fighting them in eviction court?

However, if you decide to self-manage, but need help with any rent court things, I do know a great service for that.

Landlord doesn't have to help, you have to take your tenant to court

I also think if this was in housing court, the court would say the carpet lasted its expected lifespan.