Hello from Playa Del Carmen Mexico

[Mikael S.]

Hello Fellow Bigger Pockets members,

My name is Mikael and I have lived about 4 years in Playa Del Carmen Mexico. I´m completely new to real estate investments and have joined this forum in hope of finding some answers before I plunge in and start on what could be my dream or a potential nightmare.....

I have sold my business some years ago and have lived here long enough now to know I will be hanging around for quite a while and I have slowly gotten an idea about how things work down here and feel I´m getting more and more ready to start on my dream project.

I would like to build a building here with mainly studios and rent them out to tourists using AirBNB and this should be my retirement or at least a good stable income.

I have lots of questions and lacking answers and guidelines to do a good analysis of this project and I would like to post in the Deal analysis forum and would like to write as useful a first post as possible so what info should I add in ?

I got the building costs worked out more or less but the main problem is to analyse the potential rental income so I really need help trying to analyse it...

So thats me and my real estate project :)

[Evan R.]

Hello @Mikael S. ,

AirBnB is very popular in Playa del Carmen. There were over 1000 listings! The average price per night is $196, and the vacancy rate is 79%.  If I looked into Playa del Carmen later in the week, the vacancy rate would be lower. 

I looked at all 41 of the studios(no bedroom) listings. For all studios, the average price per night is $76, and the vacancy rate for the next seven days is 79%, which is high. 

It looks like the sweet spot is at having a studio that can accommodate four people. Such units have a lower vacancy rate(67%), and charge more($170/n). Unfortunately, there are only three studios listings that accommodate four people, so this result might not be repeatable. 

Reply if you have any questions!