Deal Specs
We Buy Land 15 Miles from Downtown Cabo
On a recent trip to Cabo, we learned that we can buy land in a gated community approx. 20 minutes from the downtown section of Cabo for $130,000-$140,000.
We Build a 4 BR, 4 BA House
Parts and labor are much less expensive in Mexico than in the U.S. While this part of the equation is always the most difficult, I believe $150,000-$200,000 is reasonable range.
We are Investor-Owners and Equal Partners
We each evenly own the land and the house as joint tenants with the right of survivorship. We are each responsible for capital contributions to buy the land and pay for construction, and we share evenly in the profits for rental income during peak season (which is applied directly any loans required to pay it off as quickly as possible). Once debts are paid and ongoing expenses are covered, we share in the rental income evenly.
Also, we are each entitled to an even number of weeks throughout the year. You can use the weeks by staying at the property, or rent out your weeks and keep 100% of the income.