The current interest rate environment has put a damper on a lot of investor's plans to execute a cash out refinance. 

Your letter reveals you are feeling a bit guilty about this normal business response to an inflationary environment. 

While I have only been to the coast at Cartagena, I am pretty sure that most of the Colombian coast is unimpressive and thus not really the environment for a Tulum-like destination.

Knowing that you can double your return on your equity by selling a property you have in today's interest rate environment is a logical calculation that investors should take when trying to decide what to do with their property. 1031 exchange is usually the answer. 

A lot of investors seem to gloss over the price of a pre-payment penalty but in a Most likely dropping rate environment over the next few years that 3 year PPP can be quite costly if you cannot refi with out a large cost. 

Even in my primo areas, you don't get top dollar you do get a really primo city though.In regards to this, the risk is likely not worth it unless the operator has a successful track record, puts a healthier deposit, and signs waivers to own all liability.

This creates a particularly challenging environment for the investor in a general sense:- A regional vacation market- Competing not with other rational investors, but with people who just have a mountain home; and therefore are fine to run it at a loss.- Competition can and actually will increase in bad times, because people who own casually for second homes will try to get something instead of nothing by listing their properties for the first time.- People will fight to give everything they have to keep their primary residence, but if their second or vacation home becomes a pain in the rear, they’ll sell.

Finding good yields is tough in this environment. 

They will, and in today litigious environment thats a lawsuit. 2.

If you're providing an "up-scale" environment and hope to attract more guests of this calibre (I do; they don't quibble about higher nightly rates and rarely cause problems) then I recommend white duvet covers and wash them after each guest.