A free guide to owning, renting, and investing in Cabo San Lucas beachfront property. Written by people who live, work, and manage these properties every day.
For the last decade, Cabo San Lucas has quietly become one of the strongest second-home and investment markets in North America.
What was once a sleepy fishing town is now the favorite Pacific escape for a generation of remote-working Americans, retiring Canadians, and families looking for a place that's warm in winter, dollar-friendly year-round, and only a direct flight from most of the West Coast.
Limited land. The most desirable coastline, the swimmable beachfront stretches between Land's End and the Pacific side, is largely built out. New beachfront supply is rare.
Steady foreign demand. Roughly 60–70% of Cabo's high-end buyers are from the U.S. and Canada. Demand has been resilient through interest-rate cycles because most buyers pay cash.
Resort-grade infrastructure. Direct flights from LAX, SFO, DEN, DFW, ORD, and YYZ make Cabo more accessible than most domestic second-home markets.
Strong rental market. Cabo regularly ranks in the top vacation-rental markets in Mexico, with peak-season occupancy frequently above 80%.
Cabo isn't speculative. It's a mature, dollar-priced market with limited beachfront supply and consistent international demand. Beachfront condos in established communities have held their value through every market cycle of the last 15 years.
Inside the gated Terrasol Beach Resort, three private residences are currently available between $850,000 and $1.7M.
For context, here's what your budget gets you on this stretch of coastline, beachfront access, a private secluded Pacific beach, two heated pools (one with swim-up bar + restaurant, plus a lap pool), the Waldorf Astoria as your neighbor, and a five-minute walk to the Cabo San Lucas Marina:
| Property | Sq Ft | Price |
|---|---|---|
| The Garden Terrace (Unit 160A · Casa Ivan rental) | 2,196 | $850K |
| Honeymoon Dream · Unit 224 | 976 | $1.1M |
| The Beachfront Residence (Unit 134 · two units merged, LS side) | 2,210 | $1.7M |
Each of these condos comes with full resort amenities, on-site security, walking access to the Marina, and the option to operate the unit as a vacation rental when you're not in town.
Most beachfront 2-bedroom condos in Cabo's high-end gated communities currently trade in the $850K–$1.4M range. Penthouse and oceanfront units stretch to $2M–$3M+. Terrasol's pricing sits squarely in the upper-middle of that band, with the rare advantage of a private, secluded Pacific beachfront and two on-site heated pools.
Many owners offset a significant portion of their costs through vacation rental income. Here's what the numbers look like.
High season (Nov–Apr) drives the bulk of revenue. December through Easter is the strongest stretch, with peak premiums at Christmas and New Year.
Shoulder season (May–Jul) remains active for weddings, family travel, and remote workers escaping the U.S. summer.
Low season (Aug–Oct) is quieter, but discounted nightly rates still attract long-stay snowbirds and digital nomads.
Owners typically deduct: HOA fees, Fideicomiso annual fee ($500–$700), property management commission (15–25% if outsourced), utilities, maintenance, and cleaning supplies between guests.
We won't give you a generic ROI projection here. Every unit is different, every owner's tax situation is different, and rental performance depends heavily on listing quality and pricing strategy. Serious buyers can request real, unit-level performance data from existing Terrasol owners, ask us when you're ready.
Yes, Americans and Canadians can legally own beachfront property in Mexico. The mechanism is called a Fideicomiso, and it's much simpler than most U.S. buyers assume.
A Fideicomiso is a Mexican bank trust. The bank holds legal title to the property on your behalf, and you remain the beneficial owner, with virtually all rights of ownership: you can sell, lease, renovate, and pass the property to heirs.
It's required only because the property sits inside Mexico's "restricted zone", anywhere within 50 km of the coast. Inland property doesn't need a Fideicomiso.
For practical purposes, you own the condo. You can rent it, live in it, sell it, or leave it to your kids. The Fideicomiso is the legal wrapper, not a constraint on what you can do.
After years of working with first-time Cabo buyers, these are the questions that consistently separate well-prepared buyers from the ones who get into trouble.
Ask for two years of HOA history. Cabo HOA dues fund pool maintenance, beach upkeep, security, common-area utilities, and reserves. Quality of management here matters more than the absolute dollar amount.
Resort communities periodically assess owners for major repairs (roofs, pool renovations, palapa replacement after storm damage). Always ask, in writing.
Don't accept community averages. Each unit has its own gross income history. If the seller has rented the unit, request the last 24 months of revenue and occupancy data.
Established Mexican banks (Banorte, Scotiabank Inverlat, Bancomer) handle the vast majority of Fideicomisos. Confirm the bank, the trust expiry date, and the annual fee.
Predial is paid annually. Late or missing payments can complicate closing. A good agent and notary will verify both before you sign.
Cabo gets occasional Pacific storms. Ask about building construction, insurance, and the HOA's history responding to weather events.
Some Cabo communities allow nightly rentals. Some restrict to monthly. Some require owners to use the in-house rental program. At Terrasol, both nightly and long-term rentals are permitted.
Terrasol may be a great fit if you:
If two or more of those describe you, the next step is a quick conversation with our sales agent, Cindy Dahl, who specializes in Terrasol properties and works with Engel & Völkers.
She'll send you full details on the three currently available residences, share rental performance data, and walk you through what a Cabo tour looks like.
Cindy handles every Terrasol sale personally. No pressure, no spam, just real information for serious buyers.
Terrasol Elite · Cabo San Lucas, Baja California Sur, Mexico
terrasolelite.com