You can encourage them to apply for unemployment benefits if they haven't already.

But I am curious if my relocation would have to be fully complete or in the process before applying for the loan?

Depreciation recapture may also apply, taxed at up to 25%.

From talking to locals, there's a couple of issues than need to be addressed, some are the non-ecological practices that some of those developers have, unfortunately, our government profits from this investors and allows them to destroy manglers (which are the natural water purifying system of that area) dismantling hectares of mangroves and degraded the habitat of resident and migratory species burying animals alive.There's proof of fecal material floating beneath the city of Tulum, only 20% of the water is sent to the water treatment plant, there's no infrastructure for the exponential growth.The landfills in the middle of the jungle that is leaking hazardous pollutants into the freshwater system and that something that developers won't tell you.I love my country and it would be a disaster for everybody if this place ends up like some other great beaches around the world, that are completely ruined by greedy investors not following the rules.There's no urban or comprehensive master plan, and one of the risks is that Tulum will be like Playa del Carmen is today, overgrown and with environmental devastation.I will advise doing a lot of research before getting something in Tulum, different country, different rules, and practices.

Given your focus on equity and scaling for future development, targeting properties where you can force appreciation through value add renovations seems like a natural fit.

ALSO they have regs on rooming houses only allowed in specific zoning, similar zoning as for hotels;  only on main streets in business districts AND you have to apply for licensing and blabla as for a hotel..That said;  there is a small movement supporting rent by the room as a small step toward solving affordable housing. 

My due diligence process was certainly tightened up after that deal and analyzing properties and understanding what things will cost is now 2nd nature to me. 

I think this principle applies to everything in life.

Average rents $1200 Cincinnati but we don't know if this applies to the square footage and details of what he is thinking.

If your rental property is occupied, there are different rules that apply for selling to an investor versus selling to a buyer who intends to occupy the property.