First, is it not unusual for the Landlord/Investor to sell a property with or without a tenant in it.   

Thank you all for your responses, this was an area I was uncertain with.

It's somewhat unusual for a large in town coastal lots or homes on plots of 1-10 acres. - Boutique hotels are on fire.

Investing out of state (or country) definitely comes with challenges, especially around local contacts and management.A few thoughts from my experience investing here in Tennessee:Cutting losses can be smart if the market outlook feels uncertain and you’d rather redeploy your capital where you can leverage financing and a stronger support network.

It's uncertain as of right now.

I'd look at the experience as tuition that will allow you to make better decisions going forward, most notably not biting off more than one can chew...not an unusual young person thing...ask me how I know.

If uncertain, consult a local attorney to avoid disputes.And at last, to avoid such unexpected surprises in the future do move-out and move-in inspections.

I'm uncertain about material participation in the rentals. 

Which is why we deal with properties that have a liquidation value of $1 million plus EXCEPT in some unusual profit situations.  

Just be aware that the resale market in Tulum is tough right now, so positioning it as a real “deal” would be essential.And yes—it's not unusual in today’s market for some properties to sit empty for two months or longer, especially in less-developed areas.