The issue and opportunity for us is that in the past Belize government had problems with the contractors getting paid and not finishing.

What other scenarios could I possibly run into besides property value decreasing that could cause issues?

My issue is, he wants the payment to be reduced roughly 50% to reflect the lower principal amount. 

The downstairs tenant made a deal with her ex-husband that he would take the autistic child 3-4 nights per week to stay over by him, so there won't be any noise issues on our property (the tenant's older kids can keep quiet...it's just the autistic child that is creating the noise).

If you can get in and out of a BRRRR let's say leaving $10k in the deal.Obviously not having your name tied to the debt is a plus, but also if you haven't structured these correctly they can come back and bite the investors (due on sale, issues with prior owner of record etc). 

My intention is to address this issue by replacing all the deteriorated wood with water-treated alternatives.

All S8 really cares about is mostly health & safety issues and that everything works adequately.

I lived there for 3 weeks and then had to move back to Fredericksburg VA for a multitude of family issues.

I bought a Victorian mansion from a friend who hired the local professional flooring/bathroom company to install the bathroom tile and she had 3/6 bathrooms with large tile crack and have other issues that she had to have them come replace the tile twice in one bathroom.

@Paul D.I ran into this issue.