New to Investing. Looking for guidance
New to Real Estate · NYC · Member since 2021 · 6 posts · 7 votes
New to Investing. Looking for guidance
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James CarlsonBusiness Member
Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votesCongrats on what will be a big step. My wife and I are closing on a property in Puerto Vallarta, Mexico in a few months. If you'd asked me five years ago if I'd ever own anything outside the continental U.S., I would have said, "No way." But the process wasn't actually that tough.
A few thoughts, none of them groundbreaking:
-- Find a real estate agent you like in PR. This will be the source of your best guidance.
-- Buy AirDNA access to Airbnb/STR data for Puerto Rico. This will give you some good eagle-eye insight into the market.
-- Also, just peruse around Airbnb's site looking at listings, seeing what rates look like.
Our Puerto Vallarta vacation rental will do alright for us, but we bought it with two goals in mind -- 1. investment and 2. personal use -- and I'd say the latter was an even bigger consideration for us. This site is great, but sometimes the emphasis on cash flow, cap rates, cash-on-cash misses the point that there are other goals with real estate than purely squeezing the most money out of it.
Good luck!
8 Replies
- 2yJames CarlsonBusiness MemberReal Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
Congrats on what will be a big step. My wife and I are closing on a property in Puerto Vallarta, Mexico in a few months. If you'd asked me five years ago if I'd ever own anything outside the continental U.S., I would have said, "No way." But the process wasn't actually that tough.
A few thoughts, none of them groundbreaking:
-- Find a real estate agent you like in PR. This will be the source of your best guidance.
-- Buy AirDNA access to Airbnb/STR data for Puerto Rico. This will give you some good eagle-eye insight into the market.
-- Also, just peruse around Airbnb's site looking at listings, seeing what rates look like.
Our Puerto Vallarta vacation rental will do alright for us, but we bought it with two goals in mind -- 1. investment and 2. personal use -- and I'd say the latter was an even bigger consideration for us. This site is great, but sometimes the emphasis on cash flow, cap rates, cash-on-cash misses the point that there are other goals with real estate than purely squeezing the most money out of it.
Good luck!
- 2yMike LambertPro MemberInvestor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
Great points and good luck with your property in Puerto Vallarta. There are plenty of American and other foreigners who buy in Mexico and many, seemingly like you, do it for lifestyle first. Many just rent part time to cover their costs. Given the low operating and other costs, it's not too difficult to get a property that will do alright for you.
Yet, what many buyers don't is that they can have both and buy properties that are actually better investments than in the US if they know where to look. It doesn't have to be either. Puerto Vallarta is a great market, especially for short-term rentals, but a lot if not most properties are overpriced. Yet, one can do very well by buying the right property at the right price.
- New to Real Estate · NYC · Member since 2021 · 6 posts · 7 votes2y
Quote from @James Carlson:
Congrats on what will be a big step. My wife and I are closing on a property in Puerto Vallarta, Mexico in a few months. If you'd asked me five years ago if I'd ever own anything outside the continental U.S., I would have said, "No way." But the process wasn't actually that tough.
A few thoughts, none of them groundbreaking:
-- Find a real estate agent you like in PR. This will be the source of your best guidance.
-- Buy AirDNA access to Airbnb/STR data for Puerto Rico. This will give you some good eagle-eye insight into the market.
-- Also, just peruse around Airbnb's site looking at listings, seeing what rates look like.
Our Puerto Vallarta vacation rental will do alright for us, but we bought it with two goals in mind -- 1. investment and 2. personal use -- and I'd say the latter was an even bigger consideration for us. This site is great, but sometimes the emphasis on cash flow, cap rates, cash-on-cash misses the point that there are other goals with real estate than purely squeezing the most money out of it.
Good luck!
Hi James,
Thank you so much for the guidance. I really feel like I'm going in blind. I don't have many contacts and I'm not sure how much capital I would need to get started. Your advice is super helpful. I'm going to start looking for a real estate agent and take a look at airDNA. Appreciate you!
- 2yAaron T.Pro MemberDeveloper · Aguada, PR · Member since 2014 · 927 posts · 278 votes
Quote from @Khyati Zala:
I'm a nurse practitioner looking to broaden my financial horizons. I've been following BP for years and I think it's time to take a leap into investing. The New York market seems really difficult to break into since the prices here are outrageous. I do have many ties in Puerto Rico and ultimately would like to move down there. I know the short term rental market is hot and am wondering what's the best way to start out. Any advice is greatly appreciated.
Depending where you buy on the island, the short term rental market is saturated. Additionally, I am seeing a lot of STRs now being advertised as MTR or LTR. There are several reasons for this. If the government passes the new bill advertised early last year it will potentially shut down 30% of STRs.
- Member since 2020 · 3 posts · 0 votes2y
Quote from @Aaron T.:
Quote from @Khyati Zala:
I'm a nurse practitioner looking to broaden my financial horizons. I've been following BP for years and I think it's time to take a leap into investing. The New York market seems really difficult to break into since the prices here are outrageous. I do have many ties in Puerto Rico and ultimately would like to move down there. I know the short term rental market is hot and am wondering what's the best way to start out. Any advice is greatly appreciated.
Depending where you buy on the island, the short term rental market is saturated. Additionally, I am seeing a lot of STRs now being advertised as MTR or LTR. There are several reasons for this. If the government passes the new bill advertised early last year it will potentially shut down 30% of STRs.
Aaron,
Can you elaborate on the "new bill" What exactly does it entail? Thanks Scott
- 2yAaron T.Pro MemberDeveloper · Aguada, PR · Member since 2014 · 927 posts · 278 votes
Quote from @Scott Brick:
Quote from @Aaron T.:
Quote from @Khyati Zala:
I'm a nurse practitioner looking to broaden my financial horizons. I've been following BP for years and I think it's time to take a leap into investing. The New York market seems really difficult to break into since the prices here are outrageous. I do have many ties in Puerto Rico and ultimately would like to move down there. I know the short term rental market is hot and am wondering what's the best way to start out. Any advice is greatly appreciated.
Depending where you buy on the island, the short term rental market is saturated. Additionally, I am seeing a lot of STRs now being advertised as MTR or LTR. There are several reasons for this. If the government passes the new bill advertised early last year it will potentially shut down 30% of STRs.
Aaron,
Can you elaborate on the "new bill" What exactly does it entail? Thanks Scott
Its been reported in the news for the past year, although its hard to find any PR government document that states the details. If this passes, there could create a BNB crash on PR, or move it into the black market cash business. However, it may not be able to be booked through booking platforms. only time will tell.
https://newsismybusiness.com/house-bill-looking-to-regulate-... - 2yMike LambertPro MemberInvestor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
I've been involuntarily following this thread as I replied to James Carlson's comments about Mexico so I'm adding my two cents to the conversation when it comes to other areas.
Rental real estate investing in the US normally seems to be a long-term proposition, especially if you take the risk of a 30-year mortgage. Basic your business model on short-term rental income is risky in that, over the 30 years, regulations can and do change (not to mention oversaturation resulting from the high interest rates pushing investors to rent short-term to try to get any sort of cash flow).
We have the same situation in Canada (less the 30-year mortgages) and that's one of the main reasons, aside from profitability, why I invest overseas like in places like Mexico where there is unlikely to be regulations anytime soon, neither at the governmental nor at the HOA level.
- Member since 2020 · 3 posts · 0 votes2y
Quote from @Aaron T.:
Quote from @Scott Brick:
Quote from @Aaron T.:
Quote from @Khyati Zala:
I'm a nurse practitioner looking to broaden my financial horizons. I've been following BP for years and I think it's time to take a leap into investing. The New York market seems really difficult to break into since the prices here are outrageous. I do have many ties in Puerto Rico and ultimately would like to move down there. I know the short term rental market is hot and am wondering what's the best way to start out. Any advice is greatly appreciated.
Depending where you buy on the island, the short term rental market is saturated. Additionally, I am seeing a lot of STRs now being advertised as MTR or LTR. There are several reasons for this. If the government passes the new bill advertised early last year it will potentially shut down 30% of STRs.
Aaron,
Can you elaborate on the "new bill" What exactly does it entail? Thanks Scott
Its been reported in the news for the past year, although its hard to find any PR government document that states the details. If this passes, there could create a BNB crash on PR, or move it into the black market cash business. However, it may not be able to be booked through booking platforms. only time will tell.
https://newsismybusiness.com/house-bill-looking-to-regulate-...Thanks Aaron
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