Investment Property in Tulum - Good Idea?

[Yousef Samy]

Hello Everyone, 

I've come across many beautiful new construction developments in Tulum that i'm considering purchasing. I've read tons of articles and forums from people giving their opinions, however none of them actually bought an investment property in Tulum. 

I'm curious to hear from anyone in the states who has purchased a rental property in Tulum. What their experience was like and if it turned out to be a good investment. 

I look forward to any feedback & advice. 

Thank you, 

Yousef

[John Carbone]

Quote from @Yousef Samy:

Hello Everyone, 

I've come across many beautiful new construction developments in Tulum that i'm considering purchasing. I've read tons of articles and forums from people giving their opinions, however none of them actually bought an investment property in Tulum. 

I'm curious to hear from anyone in the states who has purchased a rental property in Tulum. What their experience was like and if it turned out to be a good investment. 

I look forward to any feedback & advice. 

Thank you, 

Yousef

I haven’t bought in Tulum, but I read in another post on BP, that someone bought a condo recently and they are not making money on it. That doesn’t surprise me because when I did some data mining on properties there, I think you would need to be purchasing in the low 100’s on a 1 bed to make money. Mexico also generally requires cash to close, with rates high and opportunity cost, that money is likely spent elsewhere. You’ll find a few people on here who got in the tulum game early and I’m sure they will have more details. 

[Yousef Samy]

Hi John, 

Thanks for your reply. Do you happen to know where they purchased or any specific reason for why it's not making money?

I'm looking at a 2 bedroom penthouse which is a lock-off. Meaning, in the busy seasons I can split my 2 bedroom condo into 2 1 bedroom apartments and rent them individually. The HOA will also handle all the marketing, renting and cleaning of the property. Besides that the property is amazing and I can visit with my family.

[John Carbone]

Quote from @Yousef Samy:

Hi John, 

Thanks for your reply. Do you happen to know where they purchased or any specific reason for why it's not making money?

I'm looking at a 2 bedroom penthouse which is a lock-off. Meaning, in the busy seasons I can split my 2 bedroom condo into 2 1 bedroom apartments and rent them individually. The HOA will also handle all the marketing, renting and cleaning of the property. Besides that the property is amazing and I can visit with my family.

I don’t have the specifics on that, but based on what you are saying, that could be a good deal getting 2 rentals out of it. 

[Sebastian Papworth]

Hello @Yousef Samy

I am a developer and owner of a buyers agency firm in Tulum (Jungle Realtor), I own and manage multiple properties, and my properties are generating solid returns, double digits. However not all properties are, this past summer´s occupancy lowered because most tourists went to Europe. However, we are seeing an increase in reservations for this winter. There are properties that are money-making machines in Tulum but there are also ones that don't rent that well, I can share my numbers and a couple of tips on what are the properties that rent the most, what size of unit has the most demand, lowest supply, what are the best locations, reputable developers, and things to look out for in your first investment here. 

[Benjamin Canyon]

Hey @Yousef Samy - I've bought a couple properties in Tulum and also manage a portfolio of vacation rentals there (mine included). I wouldn't recommend a 2-bedroom EXCEPT as a lock-off. That's the only way to do it in my opinion. And I wouldn't even bother with the 2-bedroom listing on Airbnb. Just create 2 one-bedroom listings. It will give you higher yields. What price point are you looking at?