Real Estate Investor · Wheat Ridge, CO · Member since 2015 · 36 posts · 2 votes
Hi!
I am currently looking and exploring opportunities in Puerto Rico - and would LOVE to speak to fellow people currently living in PR or the Caribbean - or those who are knowledgable.
What's the market like for rentals, buy and hold? Flips? Redevelopments? I know the economy isn't the best right now - but looking to see what others think and are experiencing...
Investor · Cabo Rojo, Puerto Rico · Member since 2015 · 95 posts · 53 votes
11y
Hi Everyone! I currently own 30 vacation rentals in Puerto Rico and lived there for some time. Please reach out to me, I would love to connect with anyone wanting to get started in the vacation rental business.
@Lawrence Johnson are there differences between the lending environment in Puerto Rico vs the mainland USA?
It really depends on the condition of the property one is pursuing. The main difference though is that there is not a wide variety of loan products available for investors compared to mainland USA but if one is comfortable putting 20-25% down has strong credit verifiable income and is ok financing 1-4 unit properties most lenders here can accommodate.
Rental Property Investor · Medellin, Colombia · Member since 2019 · 23 posts · 32 votes
7y
Hi @Tyler Divine We are actually excited about PR right now. Here are a few of the reasons:
US Territory:
As a U.S. territory, Puerto Rico enjoys unique benefits not shared by its fellow Caribbean islands. Though U.S. recovery efforts after Hurricane Maria were slower and stingier than the response to hurricanes in Florida and Texas, Puerto Rico has access to relatively extensive American disaster resources. Because Puerto Rico is a territory, the U.S. has vested interest in helping the island recover. Power and water systems, bridges, and roads will be constructed to U.S. standards. Puerto Rico has been part of the U.S. for more than 100 years, and the government has the same responsibility to the country as any other U.S. state. U.S. citizens can travel to and from Puerto Rico without a visa or even a passport. In terms of travel freedom, Americans can visit Puerto Rico as easily as they could any other state. And because Puerto Rico uses the U.S. dollar, there is minimal currency risk.
Tax incentives: In 2012, Puerto Rico introduced a series of tax loopholes to lure investors and businesses. These tax incentives make living and working in Puerto Rico an enticing prospect for businesses and investors. For more info on the tax incentives, read about Act 20 and Act 22.
Additionally, the IRS recently designated almost the entire territory of Puerto Rico as an Opportunity Zone. Opportunity Zones allow investors to defer and minimize capital gains taxes.
Real estate prices: The real estate prices are much lower than other Caribbean islands.
Minimal Airbnb Rental Competition: Hotel prices in Puerto Rico remain relatively expensive and Airbnb style rentals are scarce. For investors, this represents a major untapped market with high returns.
Economy:
Strong, diverse economy. Tourism is also only 7% of the GDP in Puerto Rico compared to 30-50% for most Caribbean islands.
Hope this helps! Happy to connect and answer any questions you might have,
Real Estate Agent · San Juan, Puerto Rico · Member since 2017 · 72 posts · 44 votes
5y
@Alexander Castro You do have to be careful in what you invest though, market has seen dramatic raises in price recently in some areas and since most puertoricans live below poverty line, cashflow for long term rent can be extremely low. I do concur that the island is beautiful, but it's not so easy to find worthwhile deals.
@Alexander Castro You do have to be careful in what you invest though, market has seen dramatic raises in price recently in some areas and since most puertoricans live below poverty line, cashflow for long term rent can be extremely low. I do concur that the island is beautiful, but it's not so easy to find worthwhile deals.
Of course! I've worked all the island. You just need some contacts to help you find what you're looking for. I know the territory and it's really hard to find agents that work with investors because they have been burned out before and because of this, some may charge a fee (we don't). The other day an agent wanted me to help her because after 11 attempts she couldn't get in touch with any local agent.
@Alexander Castro You do have to be careful in what you invest though, market has seen dramatic raises in price recently in some areas and since most puertoricans live below poverty line, cashflow for long term rent can be extremely low. I do concur that the island is beautiful, but it's not so easy to find worthwhile deals.
Of course! I've worked all the island. You just need some contacts to help you find what you're looking for. I know the territory and it's really hard to find agents that work with investors because they have been burned out before and because of this, some may charge a fee (we don't). The other day an agent wanted me to help her because after 11 attempts she couldn't get in touch with any local agent.
I say it all the time, "if you want to be successful in PR, all you have to do is answer the phone"
@Alexander Castro You do have to be careful in what you invest though, market has seen dramatic raises in price recently in some areas and since most puertoricans live below poverty line, cashflow for long term rent can be extremely low. I do concur that the island is beautiful, but it's not so easy to find worthwhile deals.
Of course! I've worked all the island. You just need some contacts to help you find what you're looking for. I know the territory and it's really hard to find agents that work with investors because they have been burned out before and because of this, some may charge a fee (we don't). The other day an agent wanted me to help her because after 11 attempts she couldn't get in touch with any local agent.
I say it all the time, "if you want to be successful in PR, all you have to do is answer the phone"
Attorney · New York, NY · Member since 2018 · 4 posts · 2 votes
5y
I’m super interested in buying an investment property in Puerto Rico but all the condos that allow Airbnb have increased their prices in the last 6 months. I was very close to buying a renovated 2,700 sq ft condo near the beach (with ocean views in the distance) in Isla Verde but the seller wanted $475K in a very old building with no amenities and no Airbnb. I just don’t think I will rent be able to rent it at $3K without direct beach views. If anyone in PR has any information on where to find good deals (other than classifieds, zillow, point2home and property shark), please send me a message.
I’m super interested in buying an investment property in Puerto Rico but all the condos that allow Airbnb have increased their prices in the last 6 months. I was very close to buying a renovated 2,700 sq ft condo near the beach (with ocean views in the distance) in Isla Verde but the seller wanted $475K in a very old building with no amenities and no Airbnb. I just don’t think I will rent be able to rent it at $3K without direct beach views. If anyone in PR has any information on where to find good deals (other than classifieds, zillow, point2home and property shark), please send me a message.
Deals are getting harder to find, sellers are becoming cry babies, and most realtors dont want to work. We have a couple more in the pipeline this year, but we will be looking at other islands starting next year.
Property Manager · Denver, CO · Member since 2019 · 30 posts · 13 votes
5y
@Tsedey B. -
Have you done any deals in Puerto Rico? I've found a mix of potential short term and long term rentals, and building my team to get started. I'm a commercial property manager and together we might make a great team. DM me if you'd like to setup a time to chat.
Investor · Palmas Del Mar, Puerto Rico · Member since 2017 · 10 posts · 2 votes
4y
PR market is very hot, lots of Act 60 people moving in permanently and all required to purchase some RE property within 2 year period. Not much on the market in good areas as noted before or you have to pay market price. price tripled on some investments
Dorado beach Ritz area sending me add emails for 4000 square foot houses without ocean view for $14 mil. and with for $16 mil. Fun times for sure.
@Alexander Castro You do have to be careful in what you invest though, market has seen dramatic raises in price recently in some areas and since most puertoricans live below poverty line, cashflow for long term rent can be extremely low. I do concur that the island is beautiful, but it's not so easy to find worthwhile deals.
Of course! I've worked all the island. You just need some contacts to help you find what you're looking for. I know the territory and it's really hard to find agents that work with investors because they have been burned out before and because of this, some may charge a fee (we don't). The other day an agent wanted me to help her because after 11 attempts she couldn't get in touch with any local agent.
@Alexander Castro You do have to be careful in what you invest though, market has seen dramatic raises in price recently in some areas and since most puertoricans live below poverty line, cashflow for long term rent can be extremely low. I do concur that the island is beautiful, but it's not so easy to find worthwhile deals.
Of course! I've worked all the island. You just need some contacts to help you find what you're looking for. I know the territory and it's really hard to find agents that work with investors because they have been burned out before and because of this, some may charge a fee (we don't). The other day an agent wanted me to help her because after 11 attempts she couldn't get in touch with any local agent.
Are you currently a realtor in PR?
I serve the East Coast of Florida, but can recommend you some great agents that may assist. Check my bio for my contact info if you want to chat : )
Real Estate Investor · San Juan, Puerto Rico · Member since 2008 · 50 posts · 1 vote
3y
Hi Tyler. I live in PR now, but I was born and raised in NYC. I'm a mortgage banker/investor and have been for 16 years. PR is a hot market. I'd say short-term rentals is the hottest market ie AirBnb. That said, PR has some amazing business tax incentives for Xpats (recently moved to PR). Many incentives are under the Act 60 laws that are very real estate friendly. Its def worth a trip to look.
Connect with me and I can give you at least my insider take on it. Thanks.
I have family with a home in the southern part of the island they've been sitting on for a long time. I'm a total newbie at real estate, but feel like it could be a great opportunity for me to dive in and get started.
My thought is to possibly rehab it and turn into a residential rental property. Thing is, I have no clue where to start, but thought I'd come here.
Would love to connect with someone who could share some insight and guidance as I've got a lot of ideas and questions.