To be honest as a broker I'm not sure we can really suggest accepting these types of offers given the high risk potential.

Because it will be very hard for you to know if he is selling you a deal in a good neighborhood, in good condition, and then placing good tenants.As others have suggested, see if there is a syndication deal that fits your investment goals.

I would love to hear any advice or suggestions on how to proceed...We just closed on a place in Puerto Vallarta.

Research high-rental areas, plan for repairs, and consider simple upgrades.

If I sell the house, I would like to use the money for real estate investments and would love to hear everyone's suggestions.  

I suggest you write up a contract with your seller and take it and your GFD to a local title agent. 

Fee simple purchase?

Of course and I never suggested otherwise.

Nathan's search method usually works, but I use what Google suggests: '<search item> site:www.biggerpockets.com' (without the single quotes on the Google search bar.) 

Here are a few suggestions on how you can maximize the wealth of information available: Check out the blogs and podcasts, or take advantage of the search feature (magnifying glass).