In addition, beyond the costs of platting, survey plat, CC&R's (condo declarations, hoa creation) you may have some additional water tap fees and requirements for fire separation.An HOA for two units is not only difficult, it's miserable for the new owners when there's not a majority to make decisions on maintenance.

I see nothing wrong with the big picture (which yours is not)...Delinquencies, foreclosure filings and foreclosures have all declined annually since 2011 -- if there is a systemic problem that's not being addressed, it's certainly not indicated by looking at national foreclosure data...Based on your posts above, it seems to me that you're one of those people who looks around, makes assumptions based on what you see and then declares, "This is the way it is for everyone/everywhere." 

@Adriel Hsu Have an attorney draft a letter to the buyer's attorney, or buyer if they didn't have one, and declare breach of contract.

Do we know that the landlord has publicly declared being advised of this by his tenant?  

I might be mis-understanding you.Of course you need to declare all of your income to stay out of jail.However, rental provide excellent tax shelters AND there are many indirect deductions that you can use as well.

If Tenant fails to pay rent when due and the default continues for seven (7) days thereafter, Landlord may, at Landlord's option, declare the entire balance of rent payable hereunder to be immediately due and payable and may exercise any and all rights and remedies available to Landlord at law or in equity or may immediately terminate this Texas Lease Agreement.22.

But the "declaration page" helps. 

(I am not inclined to believe that having an attorney be the “face” of your LLC gives you anonymity in case of a judgement: while I have no experience with the legal declaration forms, it is my belief that one has to truthfully list all assets anyway.

Another poster found a link to the site where you can apply for the said honor and even provide the wording that goes on the associated declaration.

The area where I grew up was declared an economic disaster zone in the 1960s by the Johnson administration and today, the area is part of the much larger Rust Belt.