Prefab could be a quicker option, but townhouses might offer more flexibility and better long-term returns, especially if you can recycle cash by adding modular units.

my understanding that there is rent control as well and can not increase rents more than 7% a year for the same tenant.Just trying to see if there is a possibility to enter this market at this timeTIA Hi Lydia,Currently Michigan legislature states  "a local governmental unit shall not enact, maintain, or enforce an ordinance or resolution that would have the effect of controlling the amount of rent charged for leasing private residential property."

TX is one of the fast growing markets in the US so if you have to leave more money in to break even so be it, your generational wealth is growing at a quicker pace.If you are ever interested in units that provide more cash flow, Memphis would be a great place to look. 

Those should increase in value quicker than land way out in the middle of nowhere. 

Do you want to have good cash flow, but not too concerned about the appreciation, or vice-versa, do you want a fair combination of both, do you want a property that is desirable and rents easily when vacated (or sells quicker), do you want to be able to sell it at a big profit in 10 years and buy a multi-family throwing off more cash flow or buy 3 other sfr's, etc.

It's hard to incentivize on person to pay rent quicker. 

You are correct that Tulum airport is closer + you're likely gonna get out of the airport quicker in Tulum.

Does it reduce monthly payments or keep the monthly payments same and pay off the amount quicker?

Were thinking in the next 5 years our other rental is paid off with some extra effort on our end, then that money helps us pay the next purchase much quicker etc.Regarding home quality, we would only purchase a home that we could live in if necessary.

The goal is to build equity in property quicker to eventually cash out re-finance.