Is it seriously possible to earn 20% or more on your investment? The answer is yes.

Several years ago I purchased a condo in Jaco Beach, Costa Rica and then I remodeled it for a total investment of US$90,000. It has been very easy to rent with an average nightly rate of $99 and in the last 12 months I filled 262 nights resulting in gross income in the amount of US$24,700.

My total expenses in the same period were US$5,300 and that includes EVERYTHING such as website marketing, property taxes, HOA fees, cable/internet, electricity, cleanings, repairs, maintenance, fumigation, etc.

Therefore, my net income on my $90,000 investment last year was $19,400 that comes to 21.5% ROI and that doesn’t take into consideration any potential appreciation.

Additionally, I was able to let 3 of my friends stay in the condo for free.

However, there is a catch. This return is only possible if you are in the country and managing it yourself. Otherwise you would need to pay a property manager to take care of your property and to check guests in and out.

Most property managers for this type of property will charge 25% – 35% of the rental income if they procure the renter or they will charge you a “check in fee” of roughly US$50 per reservation if you find the renter but then have your manger provide keys and concierge services.

I’m definitely not the only one onto this idea and I have a handful of clients living here who have purchased up to 5 units and are making offers on more.

One of these owners has even done better on his earnings than I have because I am selective with my renters and I only allow a maximum occupancy of 2 guests.

Investing in small units such as these could be a great retirement plan for you too. In fact, I have a client right now who will be retiring in several years and he is investing in Costa Rica real estate in Jaco using his self-directed IRA.

His plan is to eventually own 5 units and move down here upon retirement and work just a few hours a week greeting guests to his condos.

If he were to conservatively net US$15,000 per year on those 5 units then he would be able to live extremely well on the US$75,000 annual income.

Could you?

The photos here are all of condos that are one block from the beach that have been remodeled for a total investment of roughly US$90,000.

For more information about condos, homes and land for sale in the beach town of Jaco and surrounding areas please contact our Recommended Realtors in Jaco Shawn Fletcher and his wife Hannah Fletcher
 using the simple form below: 

Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.