How have they dealt with problem tenants and what seems to be a challenging legal environment for a landlord?

The larger unit will have higher maintenance/cap ex even with coastal environments being harsh on some items.I suspect your expense estimates are far too low especially if you kept the BP calculator default percentages.  

However, I believe it has deflated a bit recently due to the current interest rate environment, increased inventory of nearby new homes at a low(ish) price point, and the neighborhood turning to mostly investor owned homes.I do have mortgages; the tenants are paying these down. 

@Andy Mirza I agree that there will be vast opportunities for distressed debt in the post-Covid environment, but we won't see those assets probably for another 9 months or more.

Sponsor is realistic about current market conditions, and is humbling themselves on current portfolio, while also realistically appraising current environment as a potentially better buying opportunity than the peak 3 years ago. - Sponsor learns from mistakes.

In the current environment, my under writing (that most would consider to conservative) depicts large negative cash flow after a maximum LTV refinance.- cash out refi loans have higher rate than if cash out was not occurring.  

Next in this environment you may be challenged to get $10k rent on $1.3m property.  

I believe we are in for a very active real estate environment.

Ultimately, Lawton could be appealing to cash-flow-focused investors comfortable with high-risk, high-reward environments and looking to leverage a reliable rental base tied to Fort Sill.

Indeed, I'm not sure why you'd want to own a short-term rental home in Cancun to start with.People who land in Cancun (mostly tourists) generally either stay in a hotel / all-inclusive resort there or in the neighbouring Riviera Maya or they stay in a short-term rental in the Riviera Maya.