Welcome to BP.

This is what I would be doing and disclosing to the people looking to sue. 

If you prefer to be close to the restaurants, bars and nightclubs, you might be better off in or closer to the town although Tulum isn't that big so you have access to everything from the beach area as well.

Do you understand how to fix the issue?

This is an example of someone violating law to make more money, and it could eventually come back to bite them.

This is the breakdown:2 tenants on month to month leases ~$250-$350 less than market1 long term tenant (15yrs) is now on month to month lease and is paying $1500 less than marketAfter consulting with a couple of people and doing some research, it sounds like anything over a I should apply banking rent raise and submit a 60 day notice (all of these units fall into that category).

As of this morning, WSJ Prime is 7.75%, so I would expect the rate to be over 8% at the very least.

Are there any particular things to check when evaluating such a deal?

This would give you up to 180 days to sell your relinquished properties and not have to stress the identification time frames.

You just won’t have rent during the rehab period, you don’t need to deduct it from anything - just don’t plan on getting any.