Hi everyone. I live in Monterrey mexico and I have reviewed the options to get a loan to buy and rent a house. However, due to the high interest rate we have in Mexico (9 to 12%) I haven't found a way to buy a house and rent it and leave mw with a poaitive cash flow. Can any one help me to find out how it is done?
@Faridy Nathan I think your best bet is to contact independent real estate agents that know people mostly wanting to get rid of their properties and do a flip on them, I've been looking for deals for the past 3 months in my town and there's nothing that will leave a positive cash flow, my best find lately would have left me on the same level even though I calculated to increase the rent, Mexico's real estate market is kinda hard, not saying impossible but definitely hard
@Faridy Nathan I think your best bet is to contact independent real estate agents that know people mostly wanting to get rid of their properties and do a flip on them, I've been looking for deals for the past 3 months in my town and there's nothing that will leave a positive cash flow, my best find lately would have left me on the same level even though I calculated to increase the rent, Mexico's real estate market is kinda hard, not saying impossible but definitely hard
Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
6y
I’ve been investing in Mexico together with investors over the last couple years. We have been making it work by buying pre-construction condos from the developer at at below market prices and renting them short term in tourist areas, as the tourism industry is booming in Mexico.
I could do that only because I’ve had personal relationships with developers and got access to money because I can share these deals with the investors. Such private deals are unfortunately otherwise not available.
I’m getting involved in property development and our idea is to offer a better product than the competition by offering development so that our buyers will be able to buy with leverage.
I don’t know of any other way to make it work, aside from flipping but you’ll need access to money for that too and foreigners and Mexicans who have cash to buy prefer to buy brand new properties over renovated ones. The long term rental yields are way below the interest rate.
Thank you both @Mike Lambert and @Gerardo Alejandro Velasco Oramas. Thanks for your insights I also believe Mexico is a hard Real Estate market. I might need to start looking at other countries for investing while I increase my education on the subject. Positive cash flow is difficult to find when you get high interest rates from the banks!