Help! Is investing in the Playa Del Carmen area good for rentals?

Question

Hi, I'm seriously considering buying a Condominium in the Riviera Maya part of Mexic)(Playa Del Carmen to be more specific and I'm wondering if anyone out there has had any success with vacation rentals there?  My budget is $175,000 USD for a 2 bed 2 bath unit or larger somewhere within walking distance to the beach and close to 5th ave/downtown area?  This home will be a vacation rental that I occasionally use.  I would like to achieve at least 75% occupancy and I'm not sure if this is realistic?  I could even go a little North or South of Playa Del Carmen if it will still rent well and if it's a better value.  I know Playa Del Carmen is booming now but I still would like to get in on it before the real estate is too high for me to afford. If anyone who owns any rental properties from Cancun down to Tulum is reading this I would love to hear your feedback/advice on buying down here in this area.  I currently have a vacation rental in Tucson, Az that I will be selling to pay for this rental home in Mexico.  Thanks

Hugo Rangel · Answer

hi!

if you are looking for investment oportunityes in playa del carmen i sugest you ceck up this company wich has many properties in the area and is also doing vacation rental management.

And guys ! Yes it is still possible to buy with 175,000 USD a property that will bring you a good ROI.

Jeffrey Hayes · Answer

Thanks for everyones advice.  I appreciate it

Mishan Andre · Answer

Hey Jeff, first of all Congrats on taking the first step, which is committing to purchasing in Mexico.  I was in Cancun last year for my honeymoon and I am a big fan of Playa Del Carmen and Tulum.  However, I live, own and rent in Cabo San Lucas.  Although I'd love to say they are the same, I am pretty sure my experience compared to yours is like comparing SF to NY.  However, I'll tell you my experience in Cabo San Lucas:

75% occupancy is not unheard of, but will take some work to achieve.  It will really depend on how much effort you put into your marketing.  Start running through Google with some keywords and see which rentals in your area begin to populate regularly.  You'll have to start loading your property on all of the available websites:  vrbo, airbnb, tripadvisor, homeaway, villarentals, etc.  Make sure when you are factoring your ROI, take into account management and referral fees.  To book 75%, you will have to accommodate referring agencies.

Happy to help with any other questions:  mishan at rpocabo dot com

Ruta Uleviciute · Answer

You are better off looking in Tulum for many factors: 1. Tulum is booming now, while Playa has already reached a high level of development; so you will get better ROI in Tulum. 2. There's a lack of vacation rentals in Tulum, so a condo would rent better in Tulum than in Playa; 3. The prices are still much more affordable in Tulum. PM me, and we can send you some options close to your budget. There is a gorgeous new luxury condo that has just been put on sale in Tulum. There are other options, too.

Ruta

Jeff C. · Answer

@Jeffrey Hayeshave you looked at prices in Playa? I was there last week and looked at a 2 bed 2 bath condo that was listed for $650K at Azul fives resort. Not sure how far $175K will take you in that market.

Mike F. · Answer

75% occupancy?

Some interesting opinions http://www.scubaboard.com/community/threads/buying-property-in-tulum-advice-needed.522361/