Rob R. Says:
I’m 57, married and would like a nice second home from which to work remotely, where my wife could enjoy the beauty, yet we’d be a reasonably easy flight back to our home in San Francisco. Any thoughts?
Real Estate Trend Alert Founder Ronan McMahon Says:
Hi Rob,
I have a condo in Cabo San Lucas on Mexico’s Baja California Sur. It’s a hugely popular place for remote workers…primarily because it’s very easy to get to from the U.S. From San Francisco, you’re just about a two-hour flight away.
I personally think that the Baja California Sur is one of the most beautiful places in the world. I love to spend time here. And importantly, due to a convergence of factors, such as the influx of remote workers and growing scarcity of real estate, it has delivered a number of incredible investment opportunities in recent years.
You may not be buying as an investment, but if you can have that option, I think it’s well worth it, especially if you’re not going to be there all the time.
I remember the first summer I rented out my place in Cabo it made me $1,800 a month. Not bad, even if renting to a friend of a friend meant that it was below market rate. But since the pandemic, things have gone crazy. Rather than seeing Cabo’s long-term rental market slow, it did the exact opposite. It exploded. First, rental prices hit $2,500 a month. That seemed huge…until it went to $2,750 and $3,500 a month.
Today, even those prices seem cheap. I’m now think of asking $4,000 a month if I rent for six months next spring and summer. And from what I’m seeing on the demand side I’ll get it…
When I bought my Cabo condo alongside members of my Real Estate Trend Alert group in 2015, our RETA-only get-in price was $336,156. So, if I rent for $4,000 a month I could potentially pull in a remarkable gross yield of over 14%.
That would be incredible for a short-term rental. But renting long-term…it’s downright insane.
And then there’s the capital appreciation I’ve seen. Not long ago, a real estate agent offered $600,000 for that same condo. And even since then I’ve seen similar units list for as much as $725,000.
Where you ultimately decide to go has a lot to do with your personal preferences. There are a lot of places within Mexico and Central America that are beautiful and within just a few hours of air travel.
But if you want to buy a place that could potentially see strong rental income and capital appreciation—and if you love golf and beaches like me—then Cabo is a great choice.
Indeed, in the new year I’ll be bringing an exclusive new Cabo deal to members of my RETA group. It will be a chance to own spacious two-bed sea-view condos and lock in what I figure will be gains of $155,160 just three years after delivery.
The potential for rental income is enormous too. And the incredible planned amenities include a sky pool with awesome views…
Of course, to get in on this deal, or any other deal I bring to RETA, you’ll need to be a member.
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