I actually think she will make a lot of money from it to the right buyer.
As a Real Estate Appraiser IRL, I can tell you this much. She's at a loss on this home. They spent 150k to remodel it, and that home will likely sit on an open market for years before anyone brings her an offer, especially in this economy. A specialty buyer is one thing, but the only way she can make cash off of this house is to charge people admission- which may or may not be possible according to local zoning ordinances.