Cabo investment property

[Branden Campbell]

Wife and I are looking at our first investment property. We recently found a few condos that seem to checkout as very good deals (purchase wise). The condos are in Cabo where most research has the condos rented out 65-75% of the year. Understanding it is our first property, so out of country could be risky. But it seems like a great opportunity to also have a family vacation spot while having renters pay down mortgage. Anyone have any history or thoughts on rental properties in Cabo (Air Bnb / vrbo style)? Is this a bad move?

[George Vegis]

Branden, I'm also looking in the area - maybe closer to San Jose Del Cabo. Where did you get the occupancy figures from and secondly, have you looked into property management costs. Any particular area of Cabo you are looking at?

We were there in Jan 2020 and my data from speaking to a couple of real estate agents was that the rental market from Jun-Sept is almost zero. You can assume a 70% occupancy rate for the remainder of the time. Hence, I calculate the average occupancy at 55-60%.

The other other thing I heard is that as an expat, you will pay 25% of your rental income in tax. I've not been able to verify this.