Asking Price 489K USD.
Estimated Annual Return: 33%

Because the Playa Heaven concept is the only hostel in all of Mexico that offers free accommodation, the new owner will easily keep the 120 beds filled up with guests, and by offering a free membership to all guests with 20% discounts on all services in-house, it will cash flow 33% annually from all services like food, drinks, tours, ferry tickets, bike rentals, laundry service etc, and there’s no expenses since the 26 solar panels and the private water well gives endless supply of energy and clean water.

According to Chat GTP there are more than 40 million digital nomads traveling the world, searching for affordable quality coworking spaces. Mexico has become a hotspot for digital nomads, and the trend has been increasing steadily the past years. The concept is simple, digital nomads pay a small fee for the coworking space, and are given free accommodation. They also enjoy the fastest internet (1000 Mbs.) in town, a lush rooftop garden which seats and tables for 80 people, in addition to a pool/sundeck and a snack-bar with full-fledged kitchen service.

This 5 level coworking building is a real cash machine property, and is conveniently located in an up and coming area, next to Avenida Benito Juarez, one of the biggest avenues in all of Playa Del Carmen. The area boosts numerous new building projects, and properties in this area are set for a significant value increase in the coming years.

Size of construction: 574 square meters.
Lot size: 134 square meters.
Building levels: 3 levels containing bedrooms and bathrooms, and 2 upper rooftop levels.
Dorm rooms: 12 rooms averaging 10 bunk beds each.
Air conditioners: 12 units powered by free solar energy 24/7.
Toilets & Showers: 11 toilets and 10 shower units with free electric heaters.
Reception area: Here you will find a common area with a kitchen and a reception desk.
Bunk beds: 120 beds with memory foam mattresses, privacy curtain, locker, power outlet & reading light.
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!
Water Filters: Industrial grade water filters makes sure the entire building has clean fresh water.
Rooftop: Lush rooftop garden with sundeck, tables and 80 seats with power outlets.
Internet: 1000 Mbs. high speed internet on all levels, this is the fastest connection in town.
The Bar: Spacious rooftop bar with double BBQ grill, perfect for selling foods and beverages.

Property Potential:
Compared to average property investments, like condos and houses in this area, that has around 8-10% annual returns minus management fees, and often end up yielding around 4-5% per year after expenses, Playa Heaven is in a completely different league, where all the extra services cash flow even more than the space and the accommodation put together. With the right management, this property you can expect an annual return around 34% after expenses.

Estimated Returns Coworking Space With Free Accomodation:
The average coworking space in Playa Del Carmen charges around 15 USD. for a day pass. So at a low estimated 10 USD. per day, with only 40% occupancy, Playa Heaven will easily generate 480 USD per day, 14,400 USD per month, total 172,800 USD per year, just on renting coworking space alone.

Estimated Returns On The Rooftop Bar:
The rooftop is perfect for socializing, events, parties, seminars etc. And will be an automatic income where coworkers will be able to eat, drink and meet fellow coworkers. A low estimate of average guest spend in the bar is set at 14 usd per day, and with only 40% occupancy, the rooftop generate 672 USD per day, 20,160 USD per month, and total 241,920 USD per year.

Estimated Returns Services:
In addition to the coworking space, the accomodation and the rooftop bar revenue, Playa Heaven can also offer a wide range of products and services to clients, such as shampoo, tooth paste, bus tickets, ferry tickets, office staples, virtual office services, memberships, rooftop events, parties, 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, and especially the tours, have the potential to bring in more than the coworking space, the accommodation and the rooftop bar together. So a low estimate of average guest spend on extra services, is set to 16 usd per day. And with only 40% occupancy the income generated by these services total 768 USD per day, 23,040 USD per month, and total 276,480 USD per year.

Total Returns:
So the coworking space with free accomodation, rooftop bar, and all the additional products and services together, brings the annual return up to 691.200 USD. at only 40% occupancy Remember that the average hostel in Playa Del Carmen has between 70 and 80% occupancy, so our 40% occupancy calculation is very low and realistic. And let's also deduct 69% operational expenses from that income, and you'll be left with 31% = 213.300 USD per year in returns. So out of the sales price 639.000 USD, we get an annual return of about 33%, which is roughly 5 times higher return you’ll have on a traditional condo investment in Playa Del Carmen Mexico. This means that you’ll get back your whole investment in less than 3 years, and still have a cashflow property that keeps generating income year after year, in the most visited tourist area in all of Mexico.