1) Don't buy 2nd's unless you know what you're doing (which you probably don't).2) Don't forget to check for all the other liens that might stay with the property, but do make distinctions between liens that stay with the property and liens that don't.3) Don't by sight unseen unless you're trying to place a ridiculous amount of capital and you can make it up on volume.4) Don't buy without determining occupancy status and the "temperature" of the occupants.5) If the guys that show up every day are bidding on something, you probably can't make it work on your margins.6) Don't get emotional.7) Seriously, don't get emotional.

If I understand your post, you are only figuring 30%.It appears you are not counting some of the largest costs: vacancy, turnover cost, reserves for capital expenses etc.

Most people don't realize that Cancun is a city of over 1 million people as well as all the hotel zone which is located on the island of Cancun.There are so many foreigners owning real estate in Mexico and I believe it's their second largest industry so I really doubt that any Mexican government would be so crazy as to appropriate all the real estate and anger all of the foreigners across the world.

I believe that the distinction lies in that it's a short sale, and that the negotiator is convincing the lender to forgive debt, and the lower price can result in a bigger deficiency or tax liability for the seller as well.

Sometimes it takes a local company but there are others in addition to Foremost that will cover the homes - Foremost is the largest insurer of manufactured homes.

@Patrick Crotty If you are still exploring this as an option to reduce your DTI, I would advise figuring out which one of your loans has the largest payment for the lowest balance.

This particular property is in 92105.The other thing that's not shown here (that I intentionally removed prior to posting) that many people don't think about is the distinction between Operating Cash Flow (cash available from operations) and Free Cash Flow (cash available for distribution after re-investing in the asset)  ... as well as the percentages for Cash-on-Cash, Earned ROI (including value of loan amortization), and Unearned ROI (including market-based change in value).I was asking what you mean by "working for buy-and-hold" because I usually see people enter the market already restricted: has to be an area I want to live in ... only $X available to use out of pocket ... must be in a condition financeable for FHA ... must be an SFR ... has to have historical expenses available ... must already be a residential property ... whatever. 

That puts you at a distinct disadvantage investing in this market.Many of the podcasts and Management members have ideas which may work in certain markets or in different market cycles. 

In the past, California, one of the largest housing markets in the nation, has been a predictor for the rest of the country.

I am new to the Real Estate business and my largest fear is simply not knowing.