I think it would be a good experience for me to get landlord experience in a mostly controlled environment aka I live there. 

I'm a fan of the parcel it off now, and ground lease it for 30 years or something, if they wanna pay up front for the 30 years they can do that, but I'd retain control personally if it were me.

Here’s what I recommend:Cash Investments:No Debt, No Stress: With cash, you avoid third-party control and loan vetting, giving you full control of returns.Equity Builders: Partnering with builders often reduces your property entry cost by up to 20% below market value.Consistent 10% Returns: With an all-cash approach, achieving 10% ROI is realistic and efficient.Financing Strategy:If cash isn’t feasible, consider a balanced financing model:40-50% Down Payment: Keep leverage manageable while maximizing returns.Lower Debt Exposure: A conservative loan-to-value ratio (LTV) reduces risks and keeps returns stable.Work with a Builder: Collaboration with builders can lower acquisition costs and increase your ROI.Key Takeaways:If possible, prioritize cash for simplicity, control, and consistent returns.Financing can work well with a disciplined approach to debt and a strong underwriting process.Partnering with builders offers opportunities to reduce costs and enhance your portfolio’s profitability. 

No, you'll just avoid some areas, like you would in Mexico.Clearly, if the violence would get out of control and too many accidents with tourists happen, the growth in tourism could in theory slow down but it is nobody's interest that happens, including the drug cartels.

You can make more money if you have full control, but your time needs to be considered. 

He may get stuck with rent control laws that prevent him from catching up later. 

Though fee schedules vary by company, generally speaking, you'll pay more up front for checkbook control and less over time, since the full custodial companies will have transaction fees not to mention the red tape of going through the custodian for all transactions. 

It smelled like money and we got a fantastic price!

If you’re still concerned, you could consider installing programmable thermostats or low-flow fixtures to help control costs without relying entirely on tenant behavior. 

I'm sure you and I both understand that as flippers, having control over the construction cannot be stressed enough.