How to Purchase an International AirBnB

Do you want to own a beach house in Mexico or some other international resort area and pay for it with rental income?

Before diving into buying an international Airbnb, consider the following questions:

First, do you have disposable income to invest abroad? If your answer is affirmative, you’re ready to proceed.

The second crucial question is do you desire to own a stunning home in a prime vacation spot, with expenses covered by short-term renters. This question should elicit a resounding yes!

The key lies in identifying a location with a sufficiently high RevPAR (Revenue per available room) and an annual occupancy rate that can cover your investment and remain consistent.

In the Pocono Short-Term Rental (STR) market, many investors who bought properties during the peak of the Covid epidemic (late 2020 to mid-2022) are now looking to sell. The STR market witnessed significant deflation across the US in 2023 due to the return to offices and reduced remote work. Additionally, as travel restrictions eased in 2022 and 2023, Americans explored international destinations, leaving local STR markets oversaturated with properties that competed for fewer renters. There may be some deals available in these markets in the upcoming 2-3 years, but deals are hard to find in the Poconos right now.

With the pandemic officially behind us, areas like the Poconos now show an average 50-60% occupancy rate. This rate is common in seasonal markets with three peak months in summer and three peak months in winter. More volatile markets, like the New Jersey shore, might only experience three major peak months.  Either way, deals are hard to come by right now, and if you’re financing the property, you’ll be looking at an 8-10% interest rate.

However, emerging economies offer brand-new construction at lower costs, interest-free payment plans, and a 75%-85% occupancy rate. Property and income taxes are also considerably lower than in the US.  Locations like the Riviera Maya in Mexico (Cancun, Playa del Carmen, and Tulum), with its year-round appeal, perfect weather, and proximity to major US cities, can ensure consistent bookings.

Tim will connect you with the top builders who build at top international standards and offer builder warranties. Concerned about property management?  Tim can connect you with local reputable management companies that handle property upkeep, allowing you to collect income hassle-free.

Several methods exist for purchasing international property, such as leveraging equity from US properties or utilizing 401K or similar investment accounts. Tim can provide more information on these options. Most international builders don’t use standard US mortgages, but offer interest-free payment plans with reasonable deposits.

Once your financing is in place, Tim can guide you through the process, from choosing reputable builders to setting up contracts, local bank accounts, and, if necessary, bank trusts for investment protection.

While there can be fantastic investment opportunities in the US, the allure of an essentially free international beach destination might be more appealing. Contact Tim today for more details on starting your journey to make your money work for you and enjoy life!