Money seeping into your bank account. Regularly. Like clockwork. You hop from your comfortable bed after a restful night to find thousands of dollars have magically appeared.
Rental income! It’s among the most wonderful things in the world.
I still get a sense of quiet satisfaction every time I see rental income hit my bank account. It’s as if by some miracle…
But it all comes down to simple economics. Own one of the most coveted things in the world—best-in-class real estate in a desirable destination—and people will pay you good money to use it.
A home in a desirable beach location—like in the stunning master-planned Caribbean community of Cap Cana in the Dominican Republic—can be a money-making machine.
Rental income is one of my primary reasons for investing in overseas real estate. But where’s the best place in the world to invest for income potential right now?
Well, for the past several months, my team and I have been busy evaluating and ranking destinations on our global beat across 10 categories, ranging from Relative Value and Quality of Life to Climate, International Appeal, Holding Costs…and Income Potential.
We’ve put our findings into the 2025 RETA International Real Estate Index…my ranking of the 25 best places in the world to buy real estate for next year.
The full 2025 RETA index is only available to members of my Real Estate Trend Alert group. If you’d like access to the full index, you can join here.
Today, I’m going to share with you the top three performers in the Income Potential category…
No. 1: Los Cabos, Baja California, Mexico
The only destination to score a perfect 10 in Income Potential on the 2025 index is Los Cabos.
It’s little surprise. After all, this is one of the world’s most popular and desirable destinations. You have the natural beauty of the desert and mountains meeting the sea in dramatic fashion, the perpetually sunny weather, the stunning beaches, world-class golf, glistening marinas, high-end malls and fine-dining restaurants…
Los Cabos is a world-leading destination. The constant influx of vacationers, snowbirds, digital nomads, and work-from-home professionals makes this a perfect place to own for Income Potential.
Since the pandemic, Cabo has seen a massive influx of people. In 2023, it welcomed a record 3.86 million air passengers. It’s on track to exceed that figure in 2024. Crucially, many of those who are coming are staying longer—for months or even to live permanently.
I’ve invested in six properties here and the income potential was a huge reason why I acted on these deals. Take my Cabo condo in the Copala community in the 5-star Quivira Resort here.
I bought here back in 2015 in a RETA members-only deal. Our RETA price on a two-bed, two-bath ocean-view condo was $336,156. An identical condo to mine two floors above later listed for $725,000. That’s $388,844 more.
I spend some time at this condo each winter and when I’m not using it I rent it out long-term for $3,000 per month. Based on our RETA entry-price, that’s an annualized gross yield of 10.7%. And that’s renting long term! Renting short-term, the yields in Cabo can be even higher…thus why it tops the 2025 Index in the Income Potential category.
Right now I’m lining up another members-only deal in Cabo. This is an opportunity to own two-bed condos in a luxurious community at a RETA-only price and see gains of what I believe will be over $175,000 four years after delivery as well as big rental yields. RETA members will be hearing more about that very soon.
No. 2: Playa del Carmen, Riviera Maya, Mexico
In second spot in the Income Potential Category with a score of 9.5 is Playa del Carmen…
Set on a glistening stretch of Mexico’s Caribbean coastline, Playa del Carmen is no mere resort destination. It’s a living, breathing city—the type of place where you can grab an espresso and croissant at a co-working café in the morning…enjoy a lunch of fresh seafood on the beach with your toes in the sand…and have your choice of any number of evening entertainment options, from lively bars and nightclubs to trendy art galleries and world-class fine dining.
This mix of vibrant, cosmopolitan city and postcard-perfect Caribbean coastline has turned Playa del Carmen into a global hotspot for digital nomads and the work-from-anywhere crowd. And that’s in addition to the millions of vacationers who come each year.
Over the years, RETA members have seen some incredible deals here. A few examples…
- $309,018 More—In 2021, RETA members had the chance to buy one- and two-bed condos in a community called Singular Dream in Playa. The two-beds started from $265,304. In early 2024, a two-bed condo in Singular Dream was listing for $574,322. That’s $309,018 more.
- A Boost of $225,609—Back in 2017, I brought RETA members an opportunity to lock down two-bed condos in a community called Siempre Playa at exclusive, off-market pricing of just $193,800. In November 2023, retail prices for two-bed condos in Siempre Playa started from $419,409…that’s $225,609 more than RETA members paid.
In the foreground you can see the rooftop of the Singular Dream community in Playa del Carmen. Members are earning double-digit gross yields from our past deals here.
The rental returns have been equally impressive. One RETA member earned gross rental income of over $16,500 from a one-bed condo in Singular Dream over just the first six months of 2024. Another RETA member earned over $17,500 with a two-bed in Singular Dream during the same period. For the two-bed, that’s an annualized gross yield of over 13%.
No. 3: Cap Cana, Dominican Republic
I’ve long kept a close eye on the Dominican Republic. After Mexico’s Riviera Maya, this Caribbean destination gets the most tourists in the entire region. And just like Mexico’s Riviera Maya, this country is smashing tourist records.
In 2023, it welcomed more than 10 million travelers…a first for the Dominican Republic. It’s expected to see as many as 11.5 million by the end of 2024. That’s astonishing growth.
Most of these arrivals go to Punta Cana, easily the country’s biggest destination. And this is where you’ll find the vast master-planned coastal community of Cap Cana…
At 30,000 acres, Cap Cana is twice the size of Manhattan. And it’s just 10 minutes from the Dominican Republic’s Punta Cana International Airport, with regular flights across Canada and the American Northeast.
Everything in Cap Cana screams luxury.
It’s home to 5-star resorts…the largest inland marina in the Caribbean…world-class golf…incredible fine-dining…state-of-the-art equestrian facilities…the biggest water park in the Caribbean. And the setting is unrivaled. I’ve never seen sands so white, or waters so quintessentially Caribbean, as at the Juanillo Beach Club in the heart of Cap Cana.
The beaches in Cap Cana are quintessential Caribbean…it’s no surprise that millions of people are flocking here each year.
In September, I was able to bring my RETA group our first off-market deal here. This was a chance to own luxury condos in Cap Cana from a RETA-only price of $382,400. I bought alongside members in this deal.
Not long after we launched this deal, the developer sent word he was already raising prices and two-bed condos similar to those available to RETA members from $384,400 were now listed at $440,000. That’s an uplift of $55,600 in less than two months!
The income potential is equally astounding…
As I say, Cap Cana is just 10 minutes from Punta Cana airport…where millions of people are arriving every year. With the RETA-only price that members got, I figure gross yields of nearly 12% renting short-term once you’ve built up occupancy, referrals and repeat guests, and that’s a silly conservative prediction. I’d expect $3,000 a month renting my condo long term, for a gross yield of over 9%.
If you’d like to get your hands on the full 2025 Real Estate Trend Alert International Real Estate Index, you need to be a RETA member. Join here today and you’ll get instant access to the full report.
In it, you’ll learn about…
- Three emerging destinations in Baja California that have immense potential as growing numbers of people look to own in lesser-visited towns and cities on the peninsula…
- The destinations in Portugal where I see the greatest opportunities, including the small town, largely unknown to foreign tourists, where I’ve just bought a historic mansion…
- Overlooked hill towns in Italy that are bursting back to life and where you can find some of the best value real estate on the planet…
- And so much more…
Also in the index, you’ll find a link to a downloadable spreadsheet with all our data.
Is Relative Value most important to you? Maybe it’s Quality of Life or Climate or Income Potential? With the spreadsheet, you’ll be able to re-order the index based on your preferences.
If you’re thinking of investing in international real estate in 2025, this is an invaluable tool to have at your disposal.
Like I said, my 2025 Real Estate Trend Alert International Real Estate Index is only available to RETA members. To become a member, go here to find all the information you’ll need to join.
Ronan McMahon, Founder, Overseas Dream Home & Real Estate Trend Alert
P.S. I’d love to hear your thoughts on these destinations. Are there any destinations we left out…any others that offer such incredible rental potential? Send me an email here to share your thoughts.
