In many cases it is fully legal so long as it is your primary home and you occupy one of the units but definitely make sure you're in compliance before you move forward.

I have seen your posts on BP regarding Tulum for almost a year now and am curious if you pulled the trigger or if you are still analyzing Tulum. 

Property managers typically belong to state or national organizations that continuously update their contracts and processes to maintain compliance.

In other words Reg D provides significant protection for sponsors IF they are in compliance with its provisions and requirements and did not commit fraud.  

Permitting for additional bedrooms and garage conversions requires compliance with zoning and building codes.

I mean, you can, but you won't be in city compliance or insurance compliance if something were to happen to them.

Even if the units you tour aren't the one you eventually buy, walking around the area and getting a feel for the property types will help you be a much more informed consumer when you are ready to pull the trigger. 

Transferring a 1031 exchange property into an LLC shortly after purchase typically won’t trigger immediate tax consequences for your wife if the LLC is a disregarded entity, as you file jointly.This post does not create a CPA-Client relationship.

., constructive receipt doctrine, effective control over nominal 3rd party relationships, lack of genuine risk bearing and compliance with transactional terms, etc.).

Lenders have liability in baiting borrowers, with disclosures, rejecting loans, in giving loans, or collection and servicing requirements, liability concerns are huge compared to real estate, violations carry ten years in prison and/or $100,000.00 fines, you better know what you are doing, and there are many brokers out there running small shops that have little if any compliance awareness.