Client Profile
A couple in their 50s from California were looking to diversify their portfolio with a vacation rental property in Puerto Vallarta. Their objective was to generate Airbnb income while benefiting from long-term appreciation.
The Opportunity
In Summer 2022, they purchased a 2-bedroom unit in Rosa Morada, located in the Versalles Gastronomic District—one of the fastest-growing areas in Puerto Vallarta.
- Purchase price: $149,000 USD
- Stage: Early presale (before construction started)
- Unit size: 84 m²
- Financing: HELOC secured on their home in California
- Negotiation: Additional 2% discount secured
At the time, there were no comparable resale properties available at this price level in Versalles.
Why It Made Sense
This investment stood out for several reasons:
- Entry price significantly below market value.
- Located in a high-demand rental area with strong year-round occupancy.
- 2-bedroom units perform better for short-term rentals (families & groups).
- Unique amenity: a true rooftop lap pool, rare in this segment.
Importantly, even without ocean views and being on a second floor, the fundamentals of the deal remained strong.
The Process
The clients secured the unit early and opted for an aggressive payment structure, paying approximately 90% upfront, which helped secure better pricing.
The project experienced delays beyond the initial delivery timeline, which is common in presale developments. However, the clients maintained their position, focusing on long-term upside.
The Outcome
Today, comparable 2-bedroom units in Versalles are no longer available around $300,000.
- Estimated current value: $325,000 USD
This represents more than 100% appreciation from the original purchase price.
Rental Projection (Airbnb)
Based on current market data for 2-bedroom units in Versalles:
- Average nightly rate: $140 – $180 USD
- Average occupancy: 60% – 70% annually
Estimated annual gross income:
👉 $140 × 0.65 × 365 = $33,215 USD
👉 $180 × 0.65 × 365 = $42,705 USD
Estimated net income (after management, fees, maintenance ~30%):
👉 $23,000 – $30,000 USD annually
Estimated ROI on original purchase price ($149K):
👉 15% – 20% annual return
Key Insight
Buying early in presale—especially before construction begins—can secure pricing that is no longer accessible once the project is delivered, even for units without premium views.
A Missed Opportunity Worth Noting
Two other buyers had initially reserved 1-bedroom units in the same development but decided to cancel before construction progressed.
Given current values, this raises a key question:
How often do investors walk away from opportunities that later double in value?
Conclusion
This case demonstrates a consistent pattern in Puerto Vallarta:
Strategic presale investments—when well selected—can outperform both resale properties and traditional investments, even when factoring in delays.
For investors focused on fundamentals rather than hype, the upside can be substantial.