All Forum Posts by: Matt Ayoub

This is peanuts for a company like Airbnb. They are a giant and will be a giant. To go through a Q2 like that they are coming out relatively unscathed. Let’s not forget they are simply a broker between home owners and renters with excellent technology to facilitate that. Little fixed costs. They control their fees (Revenue) and an event like Covid required them to control their costs. While not perfect I don’t see them going anywhere but up. Interestingly, for the first time, I’m getting a bit more bullish on VRBO (Now that they are really shedding their Homeaway legacy). It’s critical we have a viable competitor in this space or all our eggs as hosts will be in one basket. They do need to up their technology game as Airbnb while not without issues is far slicker and resonates much more so with the next generation.

The worst are the glowing 4 star reviews. 

Greatest vacation ever. Incredible home. Gracious host.

4 stars.

The best site I have seen for Cabo is findcabohouses.com (you will need to register but you don’t need to use them as an agent). I have also seen a lot of listings offering seller financing (sign of slow market). I do think it’s possible to establish a strong performing VR (and place to vacation yourself) in a reasonable price range. Clearly though you need A clear value prop and a team on the ground to distinguish your service as my sense is there is plenty of inventory.

Have DM’d the link.

Interestingly Palmilla community right next door (same beaches below except ours are more swimmable) have properties 5x the price with 3-4x the HOA and way more rules / restrictions. Our community works because the villas all have private pools and you have direct beach access.

I don’t need the Concierge services, gym, tennis courts, restaurant, etc. I mainly need gated security and patrols,  a reliable water source, Maintenance of common area landscaping, architectural control / guidelines, and trash pickup. I definitely recommend Rancho Cerro colorado.

Hi @Sean Harris - I am an owner of a single family vacation rental Airbnb in a community called Rancho Cerro Colorado on the San Jose corridor near the Palmilla. We picked ours up In 2016 - 2 years after Hurricane Odile (good time to buy) and I am sure there are deals to be had as business has ground to a halt with Covid and the economy is heavily dependent on tourism.  I am sure we have some VR owners sweating right now as it went to zero (I have had two new bookings in 3 months). You should note that days on market when selling can be very high so if you are looking for a more liquid asset this might not be the play.

Overall we are very happy with our property and operating model (we manage the front end and a PM takes 12 percent) to manage the operation on the ground, supervise staff, bills, taxes, greet guests, deal with emergencies, etc. You definitely need someone you trust on the ground.

No major issues with the HOA (about 3k per year including 24 hour security).
Pre Corona we were grossing about 125k / year with a 4.96 rating on Airbnb. We paid 800k plus renovations for the property. Financing is tricky locally. My wife is Mexican so we bought in her name and avoided the need for a trust for property on the coast.
Overall Cabo is a short flight from many west coast destinations has great weather, food scene, fishing, and golf. Peak season is Nov to April but you can get some renters year round. Lots of Americans and Canadians. We prefer San Jose to San Lucas as the latter is a bit more of a spring break cruise ship scene.

Feel free to DM if I can help with any questions or recommendations. Also happy to share a link to my place which is frowned upon in this forum.

My place in Cabo Mexico is totally dead. People are not flying for vacations yet. Hoping that things will turn for the prime season Nov - April.

I’m in los Cabos Mexico. Pretty much all of March - June bookings have canceled and been granted full refunds by Airbnb despite my strict cancellation policy. Flights are definitely an issue.

I’ve had just one new booking in the last 2 months and it’s for June 2021! I’m hoping Nov-Apr rebounds.

My very successful Airbnb in Cabo has fallen off a cliff. So the model can work but covid has been highly disruptive

I voluntarily 100 percent refunded a last minute Covid related cancellation prior to these new policies and cancellation categories being created. It would otherwise qualify for the 25 percent as I am on strict cancellation. Anyone know how those cases are handled?

Very much a market specific question. In los Cabos my guests expect a pool and it is a major selling point of my property. This helps me raise my rates and makes guests happy. I pay the pool guy $70 a month to keep it pristine and it can consume some $$$ in gas. But overall critical to my value proposition.