Tulum Mexico Short-Term Rental

[Willie Cedillo]

Hi BP!

I got into a pre-sale for a condo in Tulum, Mexico with the idea that I would Air BNB it and also go in visit through extended periods. I'm supposed to receive the keys this summer and they have been making great progress but who knows how much it'll slow down with this Covid-19.

Is anyone in some kind of similar situation with their Air BNB rentals in any different country? I imagine in this economy the money has come to a grinding halt but if anyone has property in other countries whats the next move? If Keys are received on time should I attempt to rent it to a local for a long term play instead? Curious to see if anyone is in a similar situation. Thank you. 

[Mike Lambert]

@Robert Gilstrap

There are no restrictions to foreign investment. If you buy a property within the Forbidden Zone (within 31 miles of the coast or 62 miles from the international borders), you need to buy through a bank trust (fideicomiso) or a Mexican corporation. The corporation is only worth it if you buy several properties.

There are no logistical challenges to buying furnishings, electronics on anything else. You can find pretty much all of your usual American store chains in Mexico.

What your VAs are telling you is correct. Operating costs are dirt cheap in Mexico, in absolute value and compared to the potentially (very) high amount of rental income you can make.

I haven't run into any problems thus far. The recipe: knowing what you're doing and people who you know and trust.

Feel free to reach out if you have any more precise questions.