Real Estate Options in Latin America

[DJ Cespedes]

Hey All, 

I am currently still in the process of finding a multifamily unit in the Bay Area as my first investment property. I have been putting in multiple offers, but so far nothing has come up. I am still plugging away and I am optimistic that something will stick. In the meantime, I get the benefit of being able to save more and expand my budget, which opens up more options. 

That said, in addition to purchasing a primary residence here in the Bay Area, I have also been exploring the idea of purchasing an additional investment property outside of the U.S.. Specifically, I have had my eye on countries in Latin America (ex: Nicaragua, Ecuador, Costa Rica, Panama, Mexico), which combine low real estate costs with reasonable rents (which makes for good cap rates) and a low cost of living. I was surprised to see how low you could purchase a property with an ocean view in these countries for. 

Taking it a step further, I thought it would be a good idea to consider multifamily properties where I could rent out the other unit(s) to cover the mortgage (or even better produce positive cash flow) while reserving one unit for my vacation home. 

I know there are several potential obstacles to consider when thinking of such an investment, but I wanted to get the BP community's thoughts on this strategy as well as some insight/advice from those  who are currently investing abroad or considering doing so. 

What countries would you recommend and why? 

Is it possible to get a mortgage in these countries (versus paying the full cost upfront)? 

What barriers have you experienced when investing abroad and how would you recommend navigating these obstacles? 

Thanks! 

DJ