The Mexican Rental Properties Beating the US Housing Market Returns

Episode #957
Have you ever thought about buying rental properties abroad? It might surprise you, but investing overseas could bring in much more cash flow and appreciation than you thought possible. Bobby, a real estate investor from Arizona, moved his money down south, buying in both big cities and small tourist destinations in Mexico. He’s here to share everything you need to know about buying international investment properties and how you, too, can beat the US housing market by moving your money elsewhere.
It’s time to practice your Spanish because, on this Seeing Greene, señor David Verde and Rob Abasolo are here to talk about investing in Mexico’s cash-flowing coasts and appreciating capital city. Bobby details finding properties for sale when investing abroad, how to get a rental property loan (and today’s mortgage rates), the challenges American investors will encounter, and the tourist markets to look for. Plus, we’ll answer some questions from the comments and listeners about buying in a flood zone, financing an ADU (accessory dwelling unit), and how to run your numbers on a build-to-rent property.
Want to ask David a question? If so, submit your question here (www.biggerpockets.com/david?u...) so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can jump on a live Q&A and get your question answered on the spot!
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Show notes at: link.chtbl.com/BPRE
00:00 Intro
01:16 Investing in Mexico!
03:52 Financing Rental Properties Abroad
06:37 Finding Properties in Mexico
08:25 Airbnb-ing Abroad Tips
09:59 Airbnb Profit Numbers
16:27 The Problem with ADUs and HELOCs
22:41 Buy in a Flood Zone?
25:21 Build-to-Rent Calculations
29:58 Ask Us Your Question!

[@marcobello5842]

Smoke detectors aren’t used in Mexico because all construction is a mixed of concrete, steel poles, cinder blocks

[@horaciocastillo491]

It can still catch on fire though

[@enzosf]

This is fascinating. Best friends moved to Mexico in 2018 and said the mortgage o-twins were kinda useless and I never looked again. I als9 didn’t realize CDMX was nit crazy expensive definitely hoping to learn more.

[@williamhartman679]

I have financing for adus. They hold a 2nd position.

[@MarkWebbFlorida]

Great podcast guys! Thanks for sharing your financing source. Just to confirm, is it Moxi lending based in Mexico? Side note on the smoke detectors and carbon monoxide detectors. I frequently stay at a resort in the tulum area of Quintana Roo that had an entire family of 4 die a couple years ago from carbon monoxide poisoning while I was there. Absolutely wild they are not more common in Mexico. Also this wasn’t a low end hotel, this was at a 5 star resort and it was a freak accident gas leak.

[@DanielCurrier]

What I've heard about Mexican real estate in the past, showing up with cash sounds quite common.

[@sandraavalos9501]

Yes it’s common But you have to know who you make business with!!

[@claudiovallone9217]

In argentina is the same , all cash. Because if you do anything electronically the governament will want his part...

[@al2935]

If you can get dual citizenship by birthright do it! It's a massive leg up on other Americans

[@improvechannelonrealestate5487]

Hey Rob and David, let’s chat about investments in Costa Rica.

[@markavelisocal]

How can I reach out to Bobby to ask questions?

[@kanakamaoli6508]

I’d love to see you folks have a chat with another realtor from Hawaii about the market and their investment journey. I’d suggest one of the top producers from the List Sotheby’s Intl Realty on Oahu, Scott Startsman

[@Rio100Chaves]

Hi, I'm Brasilian 🇧🇷 and my mom owns real estate in Brazil. How would you suggest I approach her about seller financing her home, in Brazil, to me? I want to buy it from her and make monthly payments towards an agreed-upon price. Thanks!

[@christobar]

just ask her?

[@debbieskora7907]

IMPORTANT NOTE: You cannot 1031 into (or out of) foreign properties!

[@ReiJarrod]

Two Y'all's! ;)

[@salomonalmazan337]

I have land close to the city in toluca, and another one close to the college, very high demand in housing for students, I’m a real state investor in Pensilvania, but I would like to partner with someone to build studios or apartments in Mexico, in a good location(i have Mexican and American citizenship)

[@joelbrandon5491]

Carbon monoxide detectors are only necessary if you have gas running into the building or you have an attached garage. If you don't have either of those, you don't have a source of carbon monoxide, and it is senseless to have a carbon monoxide detector

[@redwhite62]

Can you do a 1031 into a property in Mexico?

[@emilywilson3752]

I was wondering the same thing. Was he making a joke or is that thing? I doubt it

[@debbieskora7907]

NO!

[@ethanmurray2203]

I'm buying a beachfront home near Cabo San Lucas now. There is an American escrow company that money goes through. There is an mls, realtors, and is legit. I am paying cash, as mortgages are high. It does take longer, I need to have a lawyer complete a trust, held by a Mexican bank. Closing costs are about 5% for the buyer. Go through lawyers, and be legit or you may get ripped off

[@joelbrandon5491]

You guys have how many millions? Pay the money back yourself. Why do you need to get your viewers into donating to it

[@christobar]

That was a joke bro

[@christobar]

Building in a known flood zone in Houston could possibly be the dumbest thing ever asked on here. Dude if you got money to waste just send it my way.

[@marielam3596]

What happens when the cartel takes your rental?

[@joshengen4480]

Or extorts your for a significant amount of the revenue

[@user-bz8xz5cm4y]

Respectfully, You guys sound extremely ignorant, try to learn about the topic before talking about it, Mexico is the hottest market for real estate and as secure as here in the USA

[@jeffscalfano3100]

Yo Dan, you gotta fade or taper the bushy sides of your beard down to your head since you're rocking the bald look. That being said the mane is looking good.

[@christobar]

Dan?

[@Mr.J2UMF]

Yeah we should buy that entire country. 😂