I am filing a suit in Orange County Superior Court and along with reporting to following government entity.

Totally agree, they are terrible.I will be reporting them to the governing department.Feel free to reach out and compare notes.

They lived subprime and are still haunted by mistakes the government made along with greedy lenders.

From talking to locals, there's a couple of issues than need to be addressed, some are the non-ecological practices that some of those developers have, unfortunately, our government profits from this investors and allows them to destroy manglers (which are the natural water purifying system of that area) dismantling hectares of mangroves and degraded the habitat of resident and migratory species burying animals alive.There's proof of fecal material floating beneath the city of Tulum, only 20% of the water is sent to the water treatment plant, there's no infrastructure for the exponential growth.The landfills in the middle of the jungle that is leaking hazardous pollutants into the freshwater system and that something that developers won't tell you.I love my country and it would be a disaster for everybody if this place ends up like some other great beaches around the world, that are completely ruined by greedy investors not following the rules.There's no urban or comprehensive master plan, and one of the risks is that Tulum will be like Playa del Carmen is today, overgrown and with environmental devastation.I will advise doing a lot of research before getting something in Tulum, different country, different rules, and practices.

However, my take on this is they did not do sufficient due diligence on many fronts, including city government challenges, operating challenges, infrastructure challenges and marketing challenges. 

These will certainly specify the jurisdiction and venue for any disputes, as well as the governing law.

After Hurricane Sandy in NY the vast majority of the houses on the South Shore of Long Island were lifted through various government grant programs.

I rely on personal care assistants (PCAs) for daily help, which are fortunately covered by government benefits.

I only sold a few amount of properties but the values of the homes have increased.The government is making less affordable homes(Impacts supply)A lot of the points you suggested such as selling costs and having to rehab the property before sale apply to both cheap homes and expensive homes

Certainly not afraid of it -- the government red tape is Partly a question and difficulty removing a bad tenant is probably he biggest downside - that goes for any property though.