If it is a normal 70/30 leveraged property, you may end up subject to tax on 70% of your returns anyways - so cost benefit, is that 30% tax free portion worth the high tax rates paid and additional filing fees to get tax free treatment on the 30%?

There's a lot of moving parts here but it sounds to me that you owe them at most the original $150k + a conservative 8-10% interest per year (well above market rate).

The cookie-cutter projects in Tulum have had lower occupancy rates due to various factors.

I thought about doing cash out refi, but my current rate is 3.5%. 

And I could have lower income in that window after I semi-retire, before my mortgages are paid off to take advantage of a lower marginal tax rate

With no experience you may have a bigger interest rate but if you have good margins on the hose, you should be OK.

We then take the utility bills determine base rate split and usage rate. 

And most are variable rates.

Perhaps someone with more knowledge on the neighborhood rental rates can chime in.

I really do try my best to be an awesome landlord, but it’s starting to not feel worth the time and energy.The house is at a 2% fixed rate so it’s hard to consider selling (at least right now), and getting the tenants out of the house would cost at least $5k per the Portland laws.