Alternatively, If you live in the property as your primary residence for two consecutive years you can then sell it for up to $250,000 profit if single or $500,000 profit with no capital gains at all.

Go to the alternative options.The question of "is it too much" is completely different than the  question, "can they charge for it".The answer to "can they charge for it is simple". 

I have also thought about filling in the pool and planting grass in the courtyard to save that expense, but not sure how popular the pool is for attracting tenants.  

You also need to know if there is alternative sites the tenant could move to or are they just blowing smoke.

You'll find it all in the Berlin Real Estate Market.The german capital is a vibrant place filled with history, modern or even futuristic site, and culture both classic and very alternative.

Indy has better population and job growth than a lot of popular cash flow markets.

I’m not sure what else to ask at this stage - I know nothing about this market and am trying to find alternatives to her continuing with these home costs.On a side note: I don’t see how any body affords to live in NJ with the taxes that I see being paid.

Alternatively, you can get a commercial appraisal done. 

Run the future numbers on your existing properties as if purchased today and compare them to alternatives and you will have your answer. 

The lenders really would rather not take the house, that is just the only alternative that remains for the lender to recover in most cases where the borrower does not have the means to make payments that satisfy amounts owed to the lender.