This cash machine property is conveniently located in an up and coming area at one of the biggest avenues in all of Playa Del Carmen Mexico. The building is a well planned hostel style budget hotel, that has an amazing rooftop with a bar and a sun deck. The area boosts numerous new building projects and will likely grow significantly in the coming years, making way for property value increase in the double digits. Size of construction: 574 square meters Lot size: 136 square meters Buildinglevels: 3 levels containing bedrooms and bathrooms, and 2 upper rooftop levels Dorm rooms: 12 bedrooms Air conditioners: 12 units powered by free solar energy 24/7 Toilets & Showers: 11 toilets and 10 shower units with electric heaters Reception area: Here you will find a common area with a kitchen anda reception desk Bunk beds: 120 beds with memory foam mattresses Solar panels: 26 panels powering the entire building, so electricity bill = ZERO Water well: Private 18 Meters deep well with unlimited free supply of water, forever! Rooftop: Lush rooftop garden with sundeck and 90 seats Internet: 1000 mbs. high speed internet on all levels The Bar: Spacious rooftop bar with double BBQ grill for sale of foods and beverages Property Potential: Compared to average property investments, like condos and houses in this area, that has around 10-15% annual returns minus management, and often end up yielding less than 10% after expenses, is in a completely different league, where all theextra services cash flow even more than the accommodation itself. So instead of receiving an annual return in the single digits, with the right type of management you can expect annual returns in the high double digits, even after expenses. Estimated Returns Beds: Average hostel bunk beds in Playa Del Carmen go for as low as 10 usd a night in low season, and for around 30 usd a night in high season. So with 120 bunk beds, this Hostel will generate 1,200 usd per day, 36,000 usd per month, total 432,000 usd per year , just on bunk beds alone. Estimated Returns Bar: The rooftop bar will be an automatic income where hostel guests will be able to eat, drink and socialize with fellow travelers. A low estimate of average guest spend in the bar is set at 15 usd per day, which brings the income generated by the bar up to 1,800 usd per day, 54,000 usd per month, and total 648,000 usd per year . Estimated Returns Services: In addition to all the bunk beds and the rooftop bar revenue, can also offer a wide range of services to guests, such as scuba diving, cenote tours, bike rentals, ferry tickets, laundry service, laughing gas, coffee, foods (for the shared outdoor kitchen), pad locks for the lockers, towel rental, currency exchange, beach trips, bar tours etc. And these extra services, if marketed correctly, will most definitely total at least another 20-40 usd per guest (The tours alone have the potential to bring in more than the bunk beds and the rooftop bar together). So a low estimate of average guest spend on extra services is set at 20 usd per day, which brings the income generated by these services up to 2,400 usd per day,72,000 usd per month, and total 864,000 usd per year . Total Returns: So the bunk beds, rooftop bar, and all the additional services together, brings the annual return up to 1.944.000 usd . And with only 60% occupancy, the annual return would be 1.166.400 usd . And let's deduct 60% from that for all expenses, and you'll left with the 40% = 466.560 usd per year in returns .So with a price point of 679.000 usd. for the property and the business as a whole, gives you an annual return of more than 68%. But let’s say you’re the worst manager ever, and you only generate half of our estimates, you’re still making 34% annual returns, and you’ll get back the whole property in less than 3 years. Features: - Internet - Washing Machine - Barbecue - Pool Indoor - Security - Air Conditioning
