What they might lose sight of is that banks have underwritten these HELOCs based on the owner's US income only with a margin of safety and without taking any income from the Tulum property into consideration, which therefore represents a second margin of safety.

And these were Portland Metro assets so NOT low value mid west assets.. we did this until the law changed and it was illegal to buy pre foreclosure and rent back here in Oregon..

My father in law lives in hot spring and we go visit him once or twice a year.

So, unless there's a special housing law in CA, you have the right to not renew her lease (assuming you provide enough notice per the lease) whenever you want.

It offers affordable housing, solid rental demand, and generally favorable landlord laws.

I’d recommend consulting with a lawyer who specializes in contract law to understand your options and how to protect yourself moving forward.

Next year, your income may change; your family or tax situation may change; tax laws may change.

If there is one thing I would do different is: I would invest Out Of State in markets that had sustained growth, strong job numbers, were safe and desired, and had favorable Landlord laws. 

Check local law, whether you have to accept varies by state.

Some lenders may also want to see law and ordinance coverage in your insurance and perhaps a rebuild letter from the city stating that the property could be rebuilt as a residential 4plex if destroyed.