The same problem is presenting itself with a HELOC or high rate investor fixed second on the investment properties, My DTI is the limiting factor.Does anyone have any solutions?

Often the only solution upon or often prior to sale is to rip the apartment out,,,, that is if the zoning dept hasn't forced you to do that before hand.You have to have permits to have separate utility meters to have anything of value.  

I stated that it is actually discrimination if we give preferential treatment to one tenant over another all because a lawyer sends me a letter.

Usually a soap solution on fittings while under pressure will find leak.

This tenant would need to be put up into a Hotel or Motel until the work was done due to dust and inconvenience, and if you think this tenant wouldn't have demanded this treatment,  then I don't know what to tell you.I think Padma is correct. 

Thanks guysI really am looking for a legit solution that the IHA might not be happy with but wouldnt be able to say anything about.  

Cottonwood was always a lower cost housing solution for those working in Sedona or that just want to be close to Sedona without the expense.

Make the service to tenant a little more since they live in your place could be like hotel treatment they might like it.

I'm hopeful that I can find the solution before it's too late.

However technically there is no income requirement for a property to qualify for 1031 treatment.