Maybe your situation is different and if you don’t feel comfortable in the neighborhood then this may be a moot point anyway.As for FHA, my understanding is that you must intend to live in the house for a year  it sounds like you did intend to, but due to unexpected circumstances- lead exposure and unexpected unsafe neighborhood- you have to move.

Quote from @Elizabeth Rose: @Josh Bowser this tip of doing a quick search on county GIS or software to see if homes in a neighborhood are owned in personal names or LLCs is gold, thank you!

Should these taxes be at a more normal or Canadian-style level, the city of Tulum would have an even bigger infrastructure budget and you wouldn't hear about those issues in the same way.

There's so much content and so many individuals who push inexperienced investors to take action before they are financially ready while downplaying the risks, particularly those associated with  properties in lower tier neighborhoods.

Slowly build out a repeatable process...if you continue to change things (as in different types of properties, different levels of renovation, different finish material, different neighborhoods, etc.) you create more variables and make it harder to solve to the problem.I am a math guy and less unknowns/variables you have the easier the problem will be to solve. 

But, each has their own differences.That being said, in the neighborhoods I invest in, duplexes and quads have appreciated slower than single family properties.  

So, it matters to also have a life style fit. 

- You can find this out by going to Zillow, selecting your Zip code or Neighborhood, and looking at current rental listings.

@Kwok Wong With limited exceptions its customarily the lower tier neighborhoods that present both BRRRR and cash flow.

In February of 2022 we purchased a newly renovated 3 unit building in the South Austin neighborhood of Chicago.