You boys like Mexico?

[Troy Huczel]

Investment Info:

Condo buy & hold investment.

Purchase price: $271,627
Cash invested: $109,353

Beachfront condo in Puerto Penasco, Sonora, Mexico. Beautiful 2b/2b with a view of the ocean and beachfront amenities including tennis court, BBQ area, two pools, a swim up bar, two hot tubs, palapas on the beach, beach volley ball, a gym and a delicious restaurante.

What made you interested in investing in this type of deal?

Can use it as a vacation get-away along with it being a vacation rental that cash flows. It's on the beach of the beautiful Sonoran coast of the Sea of Cortez.

How did you finance this deal?

My dad, brother and I combined our cash for $103,000 towards the purchase and closing amounts of $271,000. The other $168,000 we borrowed from my mom/dad's ex-wife. She did us a huge favor and took a second mortgage on her rental property in Phoenix that she owned free and clear and let us use the money and we just make the payments to the bank.

How did you add value to the deal?

I took care of all the legalities of owning a property in Mexico. I take care of the rentals and the monthly finances.

What was the outcome?

It has been a cash flowing property except for the summer months of 2020 because of the 'rona. We were able to do a forbearance on the loan payments since it is technically a mortgage in the USA. This has saved us from the $1,003 per month payments for nearly a year now.

Lessons learned? Challenges?

It is easier to buy a property in Mexico if each person that will be on the deed already has their permanent Mexican residency. Otherwise you have to create an LLC in the USA and that will hold the title and it takes longer to for the purchase and closing. Also, if each person has their Mexican green card you can open a bank account in Mexico and potentially apply for a loan in Mexico if you don't have all the cash for the purchase. You cannot obtain a loan in the US to use in Mexico.