Buying an Investment Property in Cabo San Lucas
Cabo San Lucas is one of the best places in Mexico to purchase an investment property. People flock to Cabo San Lucas because of the warm weather and to see its stunning scenery. There is so much to do there such as enjoying the beach, boating, fishing, and visiting the Arch of Cabo San Lucas. The town and its shopping, dining, and nightlife give people a taste of the vibrant Mexican culture like no other. Cabo San Lucas is known to be the safest state in Mexico. There is a variety of real estate to choose from, such as single-family homes, villas, and condominiums. The Cabo San Lucas real estate market is booming, so it’s a great time to buy an investment property there.
Location, Location, Location
Cabo San Lucas has a variety of styles of homes to choose from. There are even lots available to purchase so you can build a home with the style you desire. If you’re looking to rent out your property, it’s a wise idea to purchase a lot or property which is oceanfront or has an ocean view. Many people looking to vacation in Cabo San Lucas are looking for the ocean. They want to sit on a balcony and enjoy a cup of coffee or a tropical drink while watching a sunrise or sunset and listening to the sound of the waves. If you can’t afford to be on the ocean or have an ocean view, try to be within walking distance of the beach.
Age and Condition
When you purchase an investment property, it’s advisable to purchase one that is newer. If you have to buy an older property, it should be a property that has been rehabbed. You want to choose a home that is move-in ready and doesn’t need a lot of work. Your goal is to maximize your profit, so you don’t want to have to pay for repairs or replace much in the home immediately. You don’t want to have to replace expensive mechanicals such as a central air conditioning system right after closing. You don’t want the expense of needing a new roof or new windows right away either.
Price and Other Fees
Properties in Cabo San Lucas can range from under $100,000 to a couple of million dollars. Your buyer’s agent will be able to guide you in the right direction in regards to a price range for an investment property. You should ask your buyer’s agent to prepare a market analysis to show you how much you’ll be able to rent your property for each week or each month. You want a good return on investment and profit is key. Take into consideration all of the additional fees involved such as taxes or homeowners association fees. These can eat into your profits quickly.
You will want to hire a property management company or an agent with property management experience. A wise choice is using an online vacation rental company such as VRBO (Vacation Rentals By Owner) or Airbnb. These companies will market the property online and handle the rental paperwork, deposits, cleanings and so on. You will pay a fee each time the property is rented, but it’s worth the peace of mind that everything is handled correctly and legally. Part of the fee to the property management company can be included in the rental amount and fees paid by the tenant. Many property managers or management companies will arrange for maintenance, repairs and landscaping upkeep for the property. This is extremely important since you won’t be able to be “hands on” all the time.
A Home Away From Home
If you purchase an investment property in Cabo San Lucas, you can also use it for a personal or family getaway. Simply block off time from renting the property so you can vacation there yourself. This will give you the opportunity to see the property a couple of times a year to ensure it’s being taken care of. You may want to go during the slower vacation season, such as late spring. Many people want to rent vacation properties during spring break, in the summer, during the “not so hot” fall months, and over winter break.
Purchasing an investment property in Cabo San Lucas at a younger age is also a fabulous idea if you are thinking of retiring there. It is a very sought-after destination in which to retire. Enjoy the financial aspects of renting out the property to vacationers for years. Then, when it’s time to retire, you’ll have a place to live and make your own.