When it comes to building a property portfolio in Costa Rica, our province of Guanacaste (roughly, Costa Rica’s North Pacific) offers a wealth of opportunities to diversify your investments, grow your income, and strategically expand your property portfolio.
Whether you’re new to property investment and have a beginner’s budget or looking to expand an already established portfolio, there are several smart approaches to strategic property investment in Costa Rica, to maximize returns while enjoying the perks of investment (or life) in paradise. From affordable condos to commercial builds, each option offers unique benefits to meet different investment goals, timelines, and budgets.
In this post, with the help of in-house expert Lauren Mantey, we’ll explore eight powerful portfolio opportunities, guiding you through the ins and outs of each option – and how to approach building your Costa Rican property portfolio for long-term success.
Meet Our Expert: Lauren Mantey
Lauren Mantey, originally from the Philadelphia area, transitioned from a successful corporate career in Miami to a life-changing adventure in Costa Rica. After a transformative trip, she defected from Corporate America, relocated, purchased a business, and immersed herself in Costa Rica’s real estate world.
Now a top agent at Blue Water Properties, Lauren is known for her personable approach, extensive local knowledge, and deep expertise. She works with buyers, sellers, investors, and developers, and has co-developed projects along Costa Rica’s North Pacific coast. Lauren also serves on the board of CRGAR, Costa Rica’s leading professional real estate organization.
👤 Agent: Lauren Mantey
☎️ Office: +(506) 2653-4668
📱 Mobile: +(506) 8366 9267
📬 Email: lauren@bwpcr.com
Portfolio Opportunity #1: Invest in an Affordable Condo
Approximate Minimum Investment: $150,000+
If you’re looking to get in on the ground floor of property investment and begin building a property portfolio in Costa Rica, a great place to start is with an affordable condo.
Condos offer many of the benefits of property investment, as they’re highly desirable both on the short-term vacation rental and long-term residential rental markets. That said, because they share walls and amenities, you can get more bang for your investment buck – 1 to 1, a 3BR/2BA condo is usually more affordable than its equivalent single-family home – without having to invest significant time or funds into property maintenance, as that’s included in your monthly HOA.
What’s more, many area condos offer in-house property management, allowing a truly hands-off passive income route, if that’s your goal.
Purchasing a single condo or house to use as an investment property is a great way to start. It allows you to establish residency, generate income, and take advantage of resident-only financing options. Once you’ve purchased a property for $150,000 or more, you’re eligible for Costa Rican residency, which opens up the opportunity to refinance and use that equity to buy more properties. This is an excellent way to continue expanding your portfolio!
Portfolio Opportunity #2: Refinance, Reinvest, or Make an Equity Purchase
Approximate Minimum Investment: $150,000+ (1BR) to $250,000+ (2 or 3BR)
Not too long ago, this investment route was nearly impossible in Costa Rica, as bank financing was difficult and expensive for residents and completely unavailable to non-residents. Luckily, Costa Rica real estate financing is now much more widely accessible and more affordable than it once was, making this a plausible way to build your portfolio.
The idea is the same as anywhere else: Either finance a new portfolio addition or, even better, take out an equity loan to fund your next purchase.
If you’re looking to finance your property portfolio, it’s now very possible to obtain financing through Costa Rican banks, both as a resident or non-resident (although the terms may not be as favorable as in other countries).
For U.S. citizens specifically, your options now include Volo Loans, which offers traditional financing or refinancing options with more favorable terms than local banks. You can use these loans to pull equity from existing properties and purchase more, allowing you to build your portfolio without relying solely on cash.
Portfolio Opportunity #3: Sell for Profit + Maintain Passive Income
Approximate Minimum Investment: $500,000 (subdividable lot + modest home build)
Over the last several years, one of the most popular methods of building a property portfolio in Costa Rica has been to purchase land, subdivide or split it (usually in two), and then either 1) sell off one lot and use the profits to fund building on the second lot; or 2) build on both lots, then sell off the second for profit and keep the first for passive rental income.
Subdividing a lot is a cost-effective way to build a portfolio. For instance, if you find the right land opportunity – not all lots are subdividable, so you have to be selective and knowledgeable – you could subdivide and build either one or two houses: In this scenario, you could sell off either the second lot or spec home and keep the other for passive income, then use the proceeds to invest in other properties.
Notably, while there’s a lot of space in the luxury market (see below), this portfolio scenario offers a lot of leeway. I have other clients who bought a much more economical lot in Tamarindo: They’re also subdividing and building homes, one which they’ll sell and the other that they’ll hold for rental income. With their sale, they’ll reinvest in additional lots, which will enable them to continue building their portfolio with affordable, smaller homes within walking the beach (thus filling a market niche).
While not all lots can be subdivided, when possible, it’s a smart, economical way to expand your portfolio.
Portfolio Opportunity #4: Subdivide + Build Strategically for a Niche
Approximate Minimum Investment: $1M+ (ocean-view lot + 350 m2 / 4,000 ft2 modern home)
This is a very similar opportunity as #3 above, only the approach prioritizes strategic property investment in Costa Rica – more honed to fulfil a specific niche, for example, the luxury home market, walk-to-beach needs, etc.
As such, this route typically requires a higher initial investment, as more desirable land is more expensive. Additionally, if you’re building for a luxury market, your building costs will be significantly higher. That said, ROI opportunities can be massive for the right buyer.
One of my recent clients offers a great example of building a property portfolio in Costa Rica: He was looking for either beachfront lots or homes, but wasn’t sure which direction to take. We found a beautiful titled beachfront lot in Playa Potrero – beachfront is rare in Costa Rica, so this was one of those special “unicorn” opportunities – which was double the size of the two beachfront homes adjacent to it.
I suggested subdividing the lot into two, allowing him to build two beachfront homes – one for himself and one for sale. By constructing both homes simultaneously, he saves on material costs, with a projected total of around $1.5 to $2 million. Once the second home is sold, likely in the $5 to $6 million range, he stands to make a significant return. This approach not only maximizes his investment but also sets him up for future projects in Costa Rica, making it an excellent strategy for gradually building a property portfolio.
Portfolio Opportunity #5: Maximize Business ROI
Approximate Minimum Investment: $1M+
While businesses are often great opportunity for Costa Rica real estate investments, that’s not the topic here: Instead, we’re talking about leveraging a business to create a larger portfolio, either by repurposing an existing property (ex. converting a home into a B&B or hotel) or by expanding on a business (ex. building out for a minimum investment/maximum profit).
A great example is a hotel I have listed for sale, Hotel Arco Iris, which already offers a fantastic return on investment. Listed at $2.45 million, the hotel nets $260,000 annually.
But where portfolio-building (rather than just a strong investment, which the hotel already offers!) really comes in to play is when you consider the adjacent lot available for purchase, which is nearly the same size as the current 14-room hotel. With an estimated $700,000 investment, an additional 13 to 14 rooms with a pool could be built. This would double the net profit to around $520,000, thus increasing the value of the hotel to approximately $5 million – a tidy profit over an approximate $3.6M investment.
The buyer could then either sell the hotel for a profit or keep the additional rooms for passive income. Another option is to build condos on the adjacent lot and sell those off while maintaining the original hotel, offering multiple avenues to grow the buyer’s portfolio.
Portfolio Opportunity #6: Purchase Multiple Condo Units (Preferably at a Pre-Sale Discount)
Approximate Minimum Investment: $400,000+ (for 2+ units)
As stated in opportunity #1, above, condos offer exceptional investment at a lower per-unit cost, making them ideal for building a property portfolio in Costa Rica, in an economical way.
What many buyers in Costa Rica don’t know is that purchasing condos before development or during the pre-sale phase can be an especially attractive option, as many developments and buildings off a great deal on presale condos, which offer a significant discount to early buyers.
A good example of this is Mono Luxe Villas, where condos are currently in presale for $100,000 below list price. If you were to buy three condos, for example, you’d immediately save $300,000 in equity. You could sell one with that equity and upgrade to a larger investment property, or use the proceeds to buy a lot and build a house.
Portfolio Opportunity #7: Commercial Build = Passive Income
Approximate Minimum Investment: $750,000+
Blue Water Properties founder and CEO, Rebecca Clower, recently discussed commercial development opportunities in Costa Rica, stating that, for buyers “drawn to greater rewards (and the associated greater hurdles, if not risks)… Commercial development is a whole other level, and I’d recommend it only for the more experienced developers or investors who want to take on bigger projects like hotels, shopping centers, or mixed-use buildings.”
That said, if you have the experience, the funding, and the risk tolerance, commercial development can create huge opportunity to expand your property portfolio into multiple income-generating units that create month-on-month passive income, provided you choose your commercial location well.
Building a commercial center is another strong strategy. For example, Blue Water Properties CEO and founder, Becky Clower, is currently developing a commercial center in Playa Flamingo. Once complete, she will immediately begin collecting rent – all units were reserved and rented, well before building completion – on 14 commercial spaces.
These kind of Costa Rica real estate investments offers passive income and long-term value. The key in this scenario is that you need to choose the right area for commercial – not every area is zoned commercial or has sufficient demand to warrant investment – so that you can get your units rented quickly and constantly.
Portfolio Opportunity #8: Shop Fire Sales
Approximate Minimum Investment: Prices will vary
Costa Rica’s North Pacific is not often a buyer’s market – demand is too great – but occasional deals, fire sales, and other opportunities do pop up. For buyers willing to make an immediate purchase when these properties hit the market, fire sales can offer an incredible opportunity to purchase property with immediate built-in equity.
While rare – and I do need to emphasize that these opportunities are, indeed, rare, as our market has been strong for years – there are unique situations where you can find properties under market value.
For example, due to personal family circumstances, one of my sellers recently reduced their condo from $465,000 to $410,000 because they needed it sold before year-end for both personal and tax purposes.
Of course, their urgency created an opportunity for a savvy, quick-thinking buyer to buy in to immediate equity and a chance to purchase below market value. Again, these “unicorn deals” don’t come up often but for portfolio investors who are vigilant, these opportunities can significantly enhance a property portfolio.
Bottom line: By using strategies like purchasing affordable condos, subdividing lots, investing in under-market-value properties, building condos or commercial centers, and utilizing financing options, you can build a profitable and diverse real estate portfolio in Costa Rica. The only question is, what’s your preferred method?
Want to Discuss Opportunities for Building a Property Portfolio in Costa Rica?
If you’re looking for Costa Rica real estate investments, then welcome to our wheelhouse! From luxury hotels to subdividable, from vacation homes to affordable condos, we broker, offer, and represent a wide range of Costa Rica investment properties for your consideration.
Finding your right fit is not an easy task. At Blue Water Properties of Costa Rica, we’re here to help. To discuss, to advise, and to advocate on your behalf. We’ll send you the properties that fit your budget. We’ll recommend excellent residency and business attorneys. We’ll even put the word out on that uncommon gem you’re after (but that hasn’t yet hit the market).
Along the way, we’ll help you explore all the many possibilities, joys, and roads to life in paradise. That’s what we do. We thrive on relationships. We crave connection. And our goal is never to “sell a business;” it’s to fulfill dreams. It’s to make people happy. It’s to help you. Genuinely help.
We promise the fastest communication and best services in the industry. We will work to deliver on your dream. We will never pressure you. And we really do hope we’ll become friends along the way.
We’re proud to offer some of the best Costa Rica real estate, from condos and homes to land and businesses for sale. So, go ahead – try us. Give us a chance to show off our expertise – and wow you with the possibilities! We look forward to it.