Buying Our First Property In Costa Rica: Why We Chose The Convenient Center Over The Quiet Hills

This post is part of a series that covers our experiences in Buying Our First Property In Costa Rica:

• Why We Chose Not To Buy In The Philippines
• Why We Chose The Gold Coast Over the Southern Zone
• Why We Passed On This $400,000 Vacation Rental
• Why We Chose The Convenient Center Over The Quiet Hills (current post)
• How We Financed Our First Costa Rica Property

We first visited Costa Rica in March 2017 and closed on two properties before the end of the year. For our first property, we knew we wanted to be in Tamarindo, a popular beach town. Our intent was to buy a vacation rental investment for now, and “popular” ensures strong rental potential and “beach town” fits in with our priority to retire by the water.

Buying in Costa Rica was important to us because we look at it as our FIRE Escape Plan B – if we can’t afford to retire early in pricey New York City, we could definitely do it here.

Features We Prioritized For Rental Investment Purchase

In addition to rental potential and proximity to the beach, we also prioritized:

• Easy maintenance – this was our first Costa Rica rental. Sure, we would do our research beforehand, but surprises always come up. We would be miles away from this property, so we needed something easy to care for
• Strong team on the ground – regardless of how easy the maintenance seems, you will always need support on the ground for urgent fixes and the unpredictable schedules of vacation renters. Whatever we picked would need to be serviced by a team we could trust
• Walkability – I don’t drive. I’ve lived in NYC my whole life, including my college years, and wherever we end up, I want to be able to continue walking everywhere

Decided Our First Rental Investment Should Be A Condo

When we thought about the maintenance issues, we didn’t think we could handle a house. Of course, we changed our minds just months later and bought a 4-bedroom house on a double-lot!  But for our first purchase, a house seemed overwhelming.

We also thought a condo purchase would be more likely to come with a strong team on the ground. The management company that runs the condo might also provide vacation rental services. Other condo owners in the same complex might have property managers to refer to us. A condo, which requires less maintenance than a house, might be easier to manage from afar in the worst case scenario where we couldn’t find a property management team right away.

Finally, Costa Rica greatly limits building near the beachfront. So the structures that are available close to the beach are the ones that are going to be available for the foreseeable future. These were all condos. Condos were walkable to the beach and to the shops and restaurants in the town.

Narrowing The Field

We looked at a lot of places. I looked online. Scott took two more scouting trips to Tamarindo, using AirBNB to stay in the different condo complexes we were considering. His trial by fire was so important. By staying in the places we were thinking of buying, he could assess firsthand the security, the noise, the traffic, the fellow residents, the complex upkeep, and the distance to various points of interest. Many places that looked and sounded great from afar were not as nice or too noisy or further away than they looked on a map.

By the time I got down for my second scouting trip, Scott had narrowed the field to just a few places. We had a real estate agent that could show us around. Sales happen quickly so we needed to make a decision while we were there.

There were two condos that really stood out:

First was the condo we ended up buying because it was mostly renovated, situated just three blocks from the beach and town center, had a strong property management company in place (easy maintenance, check!), and condos in that area were serviced by several experienced vacation rental managers so we knew we would have a strong team in place.

Also, there was also a beautiful two-bedroom condo on a hill. Entering this condo had a wow factor – the back opened into a lush garden and a quick entry to the pool, with a partial view of the ocean beyond. However, the hill was steep (still walkable but tough), and after you made the trek, you would be at the quieter end of town. There was beach access and some shops and restaurants, but it was more remote. Fewer property managers serviced the area, and the property manager we really liked would not manage there.

Priority List Informed Our Decision

In the end, having a pre-determined checklist of priorities was so important because I could feel myself getting emotionally caught up in the condo on the hill. Without my decision criteria firmly in hand, I might have fallen for the sizzle over the substance. Instead, cooler heads prevailed, and we are so happy to have selected the convenient center over the quiet hills.

Which condo would you have picked? Do you have a firm set of decision criteria for your next purchase? What’s on your wish list?

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Check out our full series on Buying Our First Property In Costa Rica:

• Why We Chose Not To Buy In The Philippines
• Why We Chose The Gold Coast Over the Southern Zone
• Why We Passed On This $400,000 Vacation Rental
• Why We Chose The Convenient Center Over The Quiet Hills (current post)
• How We Financed Our First Costa Rica Property