This looks like a great project and definitely profitable in a high absorption market.

You need to look at absorption levels in the area for rental multifamily units with similar amenities that will be offered and finishes.

Look for: Population growth, Job growth, Job diversity (industries and employers), Rent growth projections, Absorption/Construction ratio, Cap rate trends just to name a few

Macro: Economic policies (specifically interest rates), Migration trends (state level)Micro: Population growth, job growth, residential inventory, days on market, commercial construction, absorption 

When I would look at a deal and ask the sponsor what happens if your absorption numbers after updating the units was off by 30 days what would that do to the proforma and when I got a BS /deer in headlights answer, I knew they had no clue what they were doing. 

A total of 2,700 new units came to the market during that time, while net absorption came to 1,300 units.

. * Absorption in Tulum has a healthy demand, we make market studies done by Softec which I really recommend for any developer that wants to build in Tulum, they are costly but they give us great indicators to have solid data for our clients and developers, I can share the data with anyone interested, they send the total number of projects, the total number of units, minimum, average and maximum prices, prices per sqft, inventory of units in the market by the number of bedrooms, average sizes, we have them for both Tulum & Playa del Carmen.)

Days on market, sitting at just 16, is an important metric because as people say there "feeling" is prices are far too high, and there is lack of affordability, the data speaks otherwise, where the data says it's a robust absorption in the market, if anything a very "hungry" market.

I doubt mortgage interest rates will go low enough anytime soon to significantly drive absorption of new construction given the current high inventory. 

They made about $150k/year off appreciation alone (before paying closing costs & commission) for the 2 years they owned it:Blue line is Avg $/sf, Red line is Absorption or Closed Sales, look at that upward slope!