Greece defaults?

The difficulty can be if some tenants will then complain that their neighbours have kids and use more water, so they should be billed less (etc).I would start by trying to understand why the water bills are so high.

Well done on working with the neighbours - usually a good strategy.

It's in the town of Greece and my realtor doesn't seem to know much about rentals.

If that same neighbour was having their view blocked, I'd bet money they would be furious.

@Dan C.Cemeteries aren't that bad: the neighbours are never rowdy; they mow their lawn regularly; you know no one is going to build a 9-story monstrosity next door.

@Jordan Higley The lender may not care, but an easement from the neighbour should be sufficient to satisfy any concern.  

Be a shame if you are forced to tear them out after completed or not able to sell or rent the place.You will regret not pulling permits if a neighbour reports you or there is a fire and your in villation of your insurance coverage.

And how have my US neighbours been succeeding in Buffalo?

If the GTA is anything like the GVRD in/around Vancouver, you'll likely have to look at a neighbouring market to find a cash flowing property.