If you want passive just invest in VNQ and withdraw x% in addition to the dividend vs getting pure distributions from a private reit, much safer. 

There are more factors than just pure cashflow and it seems like you are in a good position to be successful.  

Basically, from what I've seen (and this is purely anecdotal), they're not really going to go out past one, maybe two miles, unless there simply is no truly comparable property.

Also, they are purely a capital investor then they won't want to do the work and merely want to have faith in their ROI

As a local investor, I always recommend starting where you live—it gives you a better grasp of the market and makes management easier.From a purely numbers perspective, investing in a high-cost coastal market like San Diego has allowed me to grow my wealth far more quickly than I ever could in the Midwest.

At this stage I do not know if responsibility for necessary termite infestation treatment is determined purely by the articles of association and other incorporation documents of the HOA or are the HOA directors in direct breach of any Broward County, Florida State or Federal laws in not doing anything about the ( apparently widespread ) termite problem in the community ?

This appears to be more of investing in pure speculation of an unproven business model. 

Fixed income, like lending, is not purely about yield from interest charged.

From a pure investment standpoint, I hate the party pooper but I fear that, if you want to do property development in Tulum, you are too late to the party.

The interest paid is purely a function of the balance, interest rate, and compounding period.