there were 3 alternatives for longer terms for less of an increase in rent.

I don't know (recall) if they are in local ordinances but I do recall vaguely seeing some legal / ordinance type of material detailing when it can and cannot be done, regarding building in a way that directs water towards a neigbors property.I don't know Chicago that well, but as a homeowner I would try calling your local building and permit center and see if one of the local inspectors can direct you to the code section to read.I'd do that before anything else because knowledge of those ordinances will arm you / prepare you best to approach the other parties.With regards to the possibility of 'dealing' with the water, I'd be thinking about ways to do that, too - in the event that the above / negotiating an alternative solution is not fruitful. 

The alternative is that interest rates do finally begin to rise, which puts pressure on all of the companies that are overleveraged.

What are my options or alternatives?

I agree there is only a subset of estates where this might work; it will not where the heirs are unwilling to wait, if there is significant debt, etc.I am not interested in deals where I have to acquire the property outright; I am trying to come up with an alternative method.

Problem numero uno is that too many people are going to college just because they think the diploma is the value and they don't have a particular desire for a path of learning to grow.Problem B is that too many people go into debt to get a college degree when other alternatives are present. 

@Jason LamBe very careful of “Deals” that people are trying to sell you.The challenge with you being non-local to an area is you are 2 dimensional and only as good as your team on the ground.I recommend before you buy anything make sure you know what your end goals are for the reason you are investing once you know what your end goal is then you create a strategy to achieve that goal.Once you know the strategy then you find the properties that fit.Once you know what a “deal” is to you and you know your business plan... then you find the team that aligns with you and your business model.We work with a lot of investors, of the 1,000 properties we manage 50-60% are out of state / out of country investors.

Sethi believes the following:After inflation, the average return on owning a US residence is zero (Robert Shiller stats)Most people don't factor in the true cost of owning a home (interest, taxes, insurance, maintenance, cap ex, sales commissions)There is a lot of work involved in sourcing and managing rentals (vs alternatives)The masses will not have the perseverance to properly purchase RE investmentsIndex fund investing is easy and provenHe is right on many fronts and is speaking to the masses. 

The thing is I never really get an answer as to where I should be looking for the best options as an alternative.

As an alternative to hard money, you could try to ask for seller financing.