Now, buying at auction is a whole different animal since they are typically sight unseen.

From talking to locals, there's a couple of issues than need to be addressed, some are the non-ecological practices that some of those developers have, unfortunately, our government profits from this investors and allows them to destroy manglers (which are the natural water purifying system of that area) dismantling hectares of mangroves and degraded the habitat of resident and migratory species burying animals alive.There's proof of fecal material floating beneath the city of Tulum, only 20% of the water is sent to the water treatment plant, there's no infrastructure for the exponential growth.The landfills in the middle of the jungle that is leaking hazardous pollutants into the freshwater system and that something that developers won't tell you.I love my country and it would be a disaster for everybody if this place ends up like some other great beaches around the world, that are completely ruined by greedy investors not following the rules.There's no urban or comprehensive master plan, and one of the risks is that Tulum will be like Playa del Carmen is today, overgrown and with environmental devastation.I will advise doing a lot of research before getting something in Tulum, different country, different rules, and practices.

Now we are only saving $33,762.99 in interest (43.5%) and we have combined monthly payments of $632.41 + $304.16 = $936.57   Note:  I must presuming there is some assumption about the characteristics of the LoC or  how/when/if it gets repaid which I missed earlier in the thread ... otherwise ....     

If it is more than one investor and pooling funds and deals then that is a completely different animal where you would file for a SEC exemption through a form D then ahve to file with each state the investors are in and have a subscription agreement and other docs drafted. 

We gutted the house and then started building all the tiny homes, extra septic and power, parking lots, animal corrals, etc.

Print them off, study them, highlight them, make notes, read some blog posts, and understand the subject.The second document he links includes precise definitions and a guide for landlords to use for screening support animals.

What property characteristics lend to a highly desirable (high occupancy & high nightly rate) rental property in Tulum? 

Section 8 properties are a different animal than tenants with Section 8 vouchers.Remember, prospective tenants with vouchers can live anywhere. 

I think if people were a little more aware of/ comfortable with the fact that these human psychological booby traps not only exist, but are very easy to fall into even for the educated/experienced/professionals - it's how we're wired as animals - maybe fewer investors would get taken for these rides.

@Jerry Shen ahhh, if you're talking commercial lending, that's a whole other animal.