I respect @Lynnette E. for her strategy.  

I'm worried you won't respect my property because you disrespect your own face with that tattoo.

This decision doesn't influence our personal finances, other than what has been put aside for this project, which has no bearing on our personal finances and feeding our respective families.I'm hoping to circle back to this post soon with some good news and hopefully we will soon have something to commiserate with others on the BP forum about! 

I have to wonder if perhaps @Mary Mitchell really means running a business in while respecting personal values like kindness, generosity, compassion, empathy rather than running a business with emotions? 

There is so much knowledge here on BP, take what you can get and be respectful of the advice you are given. 

put your foot down, tell them they have working (maintained) heat, and if the don't like it they don't have to renew. be very clear, in writing that nothing more will be done with respect to it, period.

I respect your positive attitude though and wish you luck. 

I would have an open and honest, respectful and congenial conversation with the tenant.

To me that's a sign that there is still money to be made (as opposed to say Fountain Creek/Bates Hendricks where the price of entry is so high it is difficult to make a respectable profit). 

You could always take on additional debt to leverage that equity or put in more cash, but your equity and value numbers can't be lower than $350k and $450k, respectively.