I understand the desire to streamline operations and avoid unnecessary paperwork and fees.

Loss of privacy.  

I see a lot of unnecessary risk in investing in another country.If you still want to do it, I would start off with something on the lower end that is still nice to see how it goes for a couple of years before making a major investment out of country.I would thoroughly research all expenses such as taxes insurance, permits etc.

Between paint and flooring that are sometimes needed, and months of vacancy, it would take me YEARS to recoup those losses even with new rent increases.

That being said, the idea of putting each property in a separate LLC is arduous and I think (in my non-lawyer opinion) unnecessary.

Would you: A) Sell the lots now at a discount, take a loss but at least get some money back out to try and redeploy elsewhere. 

With that said, if you believe in the area long term and think that your losses in the short term will be offset by growth in the future, just know you're rolling the dice by making this play.Cashflow thoughts. 

With so many options out there and with big guys spending $25000 or more per month to market to sellers, it's really easy to burn a lot of cash and end up with nothing but a massive loss.

That could be a metric if they have or want to have losses to offset their other income; then it can work.

Also, they should stress-test their properties to handle any potential equity changes or loss of rent.