The only time we take a bet on a property with negative cash flow is if we have a way to force up the rents or we can force appreciation through improving the property.  

I bet you'll get some helpful answers 

maybe you're losing a few hundred in cash every month, but i'd be willing to bet the appreciation, debt paydown, and tax benefits combined are seriously outweighing that. you could look at this like putting the negative cashflow every month into an invisible savings account for the future, like a retirement account. this obviously only works if you can comfortably lose that cash every month. you could also consider not renewing the lease and doing STR or MTR in that property?

My answer is: doesn't matter-- they'll seek to avoid the conflict and I bet for $2500... they'd pay. now the real question in the OP's case is "is a search of water department's records USUAL AND CUSTOMARY prior to title policy writing and closing on her jurisdiction?

Eventually it all comes back, its a matter if you want to pay the bank or pay yourself- both hurt in their own ways but we bet on ourselves every time.I can say a great way is to share your specific property when you are ready and there are a lot of great advice on what a good property can do.In any case, good luck, hopefully you execute a plan!

While I have not encountered this, and know there are very odd requirements placed on property owners looking to develop land, this feels a little off given there are other property owners on the road and life-safety access tends to be the top most requirement in all roadways.

Sure if you take a bet on rates... 

A mom & pop with a beloved local business or a franchiser with just a few of a hot new concept are probably better bets and cheaper too.

guarantor would be the safest bet.

Your best bet is some kind of bridge loan to close efficiently and then refinancing once it has been seasoned to take full advantage of that discount that you are getting.