They probably won't like it but it can have a big impact on your bottom line.

You also provide a very tangible service, housing...a nice change from abstract jobs where the deliverables aren't as clear...Granted, you can't control some market forces and even real estate has gray areas (like you do to all right but still run into issues ) .

If this is the case, it could have a significant impact on our portfolios, not just in 2018, but as rates continue to (rapidly) rise across all indexes.  

I understand there might be a way around this by forcing a hike in interest that effectively scares off the borrower and forces them to turn to a lower-interest loan that is then used to pay off the land contract.

This kind of interpretation comes from a depth of knowledge of the tax code and years of experience working with IRA plans and related court cases, and piecing together all the variables and interrelated components that impact such structures.This is, arguably, a conservative interpretation.  

Robert Kiyosaki four years ago; His book Rich Dad Poor Dad made an emotional impact on me.

The reason I am so concerned is that The city has already forced me tear down one other building on the property which was reported (apparently) by a neighbor.  

Just be prepared for how that will impact your financial situation overall, because the interest rates on those might be in the 25-28% ballpark - it's something you'd want to have a short term horizon for paying off.

However, if the numbers are on the tighter side then forcing the repair might be a good option to use and still close the deal.I would assume that if you were able to get responses from a number of others on the site they would probably say things like I am going to list here.1) Problems can seem small and simple at first but grow larger in a hurry - it happens.2) Depending on the type of shower/tub installed in the above unit it may be more than a simple fix and get into much more money than you think - you won't know until you open the ceiling for sure.3) After the plumbing repair you could be looking at mold potentially in the joist spacing area between units.4) Depending on the length of time the issue has existed and been patched to get by you may also have damage to the wood - joists between units and or sub floor issues under the upper unit tub/shower.5) If there is insulation between the two units, you may have soaked and degraded insulation that needs to be replaced as well - good news is that rock and insul are cheap to replace.6) OR......... you may have someone open it up to fix it and its just a simple plumbing issue and is a quick and easy fix - totally possible too.Just as an illustration, I went to replace a bath faucet for an accountant friend of mine yesterday.

Every strategy doesn't work in every market though, so if you are in a market where this strategy doesn't work...don't force it...or rationalize the use of it in that market.