A positive ending could be that the neighbor and the blackmailer find out that they both have a common enemy or a common goal. They could decide to work together to overcome this obstacle or achieve the goal, and in the process, the blackmailer forgets about the blackmail and the neighbor forgives them. For instance, if there is a local developer who wants to destroy their neighborhood, they could join forces to stop the development and in the process, build a new and positive relationship.
One possible plot could be that the main character discovers a secret of the neighbor, like they are secretly growing illegal plants in their backyard. Instead of reporting it right away, the character starts to blackmail the neighbor for small favors, like getting a share of the neighbor's home - baked pies. As the story progresses, the neighbor tries to find a way to turn the tables and expose the main character's not - so - noble intentions.
Once upon a time, there was a neighbor named Tom. He noticed that his neighbor, Mr. Smith, had a secret garden full of rare plants. Tom, being a rather unethical person, decided to blackmail Mr. Smith. He threatened to tell the whole neighborhood about Mr. Smith's excessive watering which was against the local regulations, unless Mr. Smith gave him some of those rare plants. Mr. Smith was outraged but felt cornered. In the end, he found a clever way. He invited the whole neighborhood to see his garden and explained his watering system was actually an innovative experiment to save water. Tom's blackmail plan failed miserably and he was shunned by the neighbors.
Another approach is to make it a story of redemption. The nephew starts with the wrong idea of blackmail but quickly realizes his mistake. He then spends the rest of the story making it up to his aunt, learning important lessons about family, respect, and forgiveness along the way.
One consequence could be that the blackmailer is exposed. For example, if the neighbor being blackmailed finds evidence of the blackmail attempt and shows it to the rest of the community. The blackmailer then might be shunned or face legal action if the situation is serious enough. Another consequence could be that the blackmailer's plan backfires. Like in a story where the neighbor they are blackmailing turns the tables and uses the blackmailer's own secrets against them.
If it's just a fantasy story, it might explore themes like power dynamics. The person blackmailing the sexy neighbor could be someone who feels powerless in other aspects of life and uses this unethical means to gain control. However, in any good story, there should be consequences for such actions. Maybe the blackmailer realizes their mistake and tries to make amends, or they face social ostracism for their actions.
The story could end with the virgin making a deal with the blackmailer. Maybe they offer something else in exchange for their freedom from the blackmail. Or perhaps, a third party intervenes, like a friend or a family member who discovers the blackmail situation and helps the virgin out, resulting in a happy ending where the virgin is saved from the clutches of the blackmailer.
Blackmailing is completely unethical. In the context of a 'blackmailing my mil fantasy story', it might seem like just a fictional plot device, but it represents a very negative behavior. It shows a lack of moral fiber in the character who engages in it. Moreover, it sets a bad example if readers were to think that such behavior could be acceptable in any way. Ethical behavior should always prevail, and blackmailing goes against all norms of good conduct.
The story could be rewritten so that instead of blackmail, the student discovers a problem the teacher is facing and offers to help in a positive way. Maybe the teacher is being wrongly accused of something, and the student uses their intelligence and courage to find the truth and exonerate the teacher. This would turn the negative premise into a positive story about justice and kindness.
You can also make it more of a psychological exploration rather than an actual act of blackmail. Maybe the main character has thoughts of blackmailing the neighbor but in the end, decides against it after considering the consequences. This way, you can still explore the power dynamics and the relationship between the two characters without promoting unethical behavior.
One way is for the babysitter to have a great time with the child and for the parents to be extremely satisfied. For example, the child could have learned something new from the babysitter, like a new song or a simple cooking recipe. The parents come home to a happy child and a clean house, which makes them really glad they hired the neighbor as a babysitter.