I am looking at buying real estate in Puerto Rico and renting it out on Airbnb. I looked at other airbnb rentals and even the superhosts in popular vacation town called Rincon that have calendars that are WIDE OPEN! Like a few sparse weekend and weeks but mostly NOT BOOKED! Im wondering if its a good investment because not only can you only ask $65-$125/night (vs my rental in Ocean City, Maryland when I can get up to $700/night) but it seems no one is renting down there period. Is this just because of the hurricane and people aren't going there as much or is Airbnb not big in Puerto Rico or is this just the short term rental situation in Puerto Rico period?
I have heard of the great tax benefits for Puerto Rico so I wanted to take advantage..and if anyone knows those advantages and wants to break that down for a short term rentals business through airbnb that would be great too! Thanks everyone!
Glad you asked the question I’ve been looking and wondering the same thing.I live and invest in Boston but my family originates from the West Coast side of Puerto Rico and for a couple of years now I have been considering investing in short term rentals on that side of the island (Isabela, Aguadilla, & Rincon). I will be traveling there at the beginning of July to scope out the area, get a feel for things and see what is available. I know for certain many properties for sale never hit the internet as things like mls are not widely used in PR. Overall I am thinking that tourism traffic is still in a recovery phase but will eventually pick up (Take a look at this article: https://www.google.com/amp/s/amp.cnn.com/money/2018/04/03/news/puerto-rico-tourism/index.html ). One of the trends I’ve noticed on Airbnb’s I’ve been tracking is that they are not being booked way in advance like in other areas. This is maybe because of some of the hesitance of tourist unsure if they want to travel there yet, but it appears people are making bookings but more or so closer to the travel dates.
@Jose Brandao thanks for this info. Good stuff.
Hello Rebecca Cramer,
You mentioned the tax benefits associated with Puerto Rico and this is something that I have been very interested in as well. I found this article published by Nomad Capitalist that was very helpful:
There are many requirements that need to be met in order to benefit from these tax incentives but it seems that the one that people have the hardest time complying with is being a "bona fide resident". Essentially, you will need to move to the island and live there in order to qualify for this tax incentive.
Hope this helps!
Rincon is saturated with Airbnbs. They will work, but you have to buy at the right prices. I just spend the weekend in Rincon, as we do a few times a year.
Rincon is very seasonal, so in the off season you can even rent for 6 month as a long term furnished rental.
Unfortunately, Rincon is owned by a lot of investors, so dont expect discounts. if you want a discount, bring a cash offer, then look at refinancing with a bank.
if you bank finance, you will need to use a bank that has a location on PR. shop around, because different banks loan on different properties (condos, SFRs, Multifamily, etc) with different rates and terms.
Thank you all for all the good info about investing in PR. Has anyone been successful in doing a BRRRR in PR? I wonder if it is worth trying given the low house prices right now. Thanks!