And, interestingly, you now observe cross-overs between the two areas, as more and more Europeans go to and buy property in Mexico alongside the ever growing number of Americans and Canadians while more and more Americans and Canadians buy in Spain/Portugal alongside an increasing number of Northern Europeans as well.Mexico might be the best option for North Americans and Spain/Portugal for Europeans for obvious reasons but especially if there's a lifestyle component involved as well.Don't forget though that these are generalizations as there's no one size fits all so it'll depend on your goals, the location, the type of property,...Importantly, unlike in Asia, the standard property title is freehold and foreign buyers have the same rights as their local counterparts so no discrimination there.

I may not spend as much on maintenance and capex right now but in a few years I certainly will as every component has its own life cycle.  

I was assuming this was near San Jose where appreciation could be a major component of the investment.

Its one component of the whole package.  

Former business owners often attach an emotional component to a failed business and assign sweat equity value to numbers for build out and equipment that doesn't exist.

We will be replacing the major components of the property so we should not anticipate any major repair issues. 

It's more than just replacing the dry wall, you could be looking at electrical system components, a/c handler, plumbing/copper, etc.  

If all goes according to plan, the Asian flatscreen component manufacturer, FoxConn, will begin construction of a new facility here that will ultimately employ 13,000 people.

Depreciation recapture seemed to be the one thing he was most concerned with. 3) What are your thoughts on coming in at a lower price with a higher interest rate component?

The 50% rule takes into account the following:1) The fundamental long term nature of investing in real estate.2) The design life of all components and sub-systems of a structure.3) Murphy's Law- Anything that CAN go wrong, will.The fact is, in any given year, your figures may be right on...for that 12 month period.