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Best of all pick one of the properties to be you retirement home and write off the improvements that you make as investment expenses
Pretty basic. My model for Costa Rica is to find shore front properties that are off of the beaten path. I do the basic trend analysis for property value (5 year trend). I have a local realtor who scouts places and the. I visit. At the end of the day I know by the “feel” if it’s something that’s going to work. My market is primarily people from the US for the airBB stuff. Knock on wood! I’ve been doing this for 6 years and have bought four properties. I am in the process of selecting the 5th. Still looking.
Averaging 7-9 percent growth annually except for one property. I forced that one and it really hasn’t done anything worthwhile.
I chose CR because that is where I want to retire. 6 MO the here (US) and 6 there. Very US friendly and stable economy and government.
Cash flow from covers the mortgages for the most part. I keep a 10 percent reserve incase I hit a problem with renting out or I have an emergency. My plan is continue to buy and rent out until I retire. Then I’ll assess selling properties or continue to grow. I don’t want more than 7-8 as I am not interested in managing becoming my new full time job when I leave our lovely consulting world. I’m still 10-15 years away from when I want to stop working. So far the plan is going fairly well.
Real estate and the stock market. Mostly real estate Aruba and Costs Rica have amazing opportunities at an affordable price point. Air B&B is a blessing and you can reinvest the income into additional properties
Growth is measure of property value.
MD1 thanks for sharing. Will do once i move up the Maslow’s hierarchy.
MD1 how are you doing your research / identifying properties?
Md1 you rock!
I didn’t go with a firm. I pay a husband and wife team who come around every week to the properties and do basic maintenance, clean, etc. for maintenance he sends me the bill. If the cost is over $500 us he contacts me and we discuss options. It works out well. I am pretty happy with the setup.
I've never really understood real estate as an investment. An 8 percent return on a grossly illuquid asset - minus upkeep, minus mortgage interest... With the chance of terrible renters, a midnight problem to deal with, or a catastrophic loss. Why that vs diversified low fee index funds?
Nice. MD1! I’m investing in pre IPO companies like Slack and Lyft
Nice MD1: 👏 Great value appreciation. What’s your average net cash flow from a property in CR and why CR? Have you considered other locations?
In CR you can get a really nice beach front in the 150-250 range. I intentionally avoided the tourist centered areas because I feel like it’s a different kind of renter. Also property and homes are cheaper. Aruba is similar. I am in the process of investigating there.
MD1- what price range to be considered a good investment ?
What does 7-9% growth mean in this context?
MD1: One last question. Do you have a property management firm in CR you recommend?
What are you seeing for average price points for those types of homes in the beach ish? Did you consider anything else besides CR?
Honduras is also apparently very attractive but I do not know a lot about that place. I know a couple of people who are doing what I am doing there
Aruba is interesting. Any areas you’re looking at specifically ?
Any troubles securing financing?