Investor · Voorheesville, NY · Member since 2014 · 13 posts · 5 votes
Greetings,
My wife and I are considering investing in a vacation rental in Puerto Rico once the dust settles down there. We have only visited once but loved the island and the people. I think there is some real upside to the RE market in PR, especially if the US government offers loan incentives similar to what was provided in New Orleans after Katrina. Another motivation is I currently have a few duplexes in upstate NY and wouldn't mind diversifying my portfolio a little.
Does anyone have experience with vacation rentals in PR? I would love to hear what your experience has been. Just doing a quick internet search it doesn't appear vacation rental property management companies are abundant. I am also curious about the different markets. I am particularly intrigued by Rincon and the northwest coast in general.
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
8y
I can't imagine running a furnished rental in a place where you need an airplane or ship to visit. My 22 furnished STR's are all within 7 minutes of my driveway. My wife and I do all the work. You would need someone to mow, clean, do repairs, restock, and do specialty things. Paying people to do all that is cutting in to your bottom line. And how would you follow up to see the quality of the work done? I have appliances break, it happens. Most of the time a 5 dollar part can fix it. If I don't have that 5 dollar part in a cabinet in my garage, I can get one in 72 hours from ebay. If it is a rush repair, I have spare appliances in a storage building.
How much would it cost to change a leaking flapper on a toilet?
How much to change a light bulb?
How much to change air filters in an air conditioner?
How much to reset a tripped breaker?
How much to fix an HDTV when someone has accidently changed the input?
How do you decide when to toss the sheets and towels or reuse them?
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
8y
I can't imagine running a furnished rental in a place where you need an airplane or ship to visit. My 22 furnished STR's are all within 7 minutes of my driveway. My wife and I do all the work. You would need someone to mow, clean, do repairs, restock, and do specialty things. Paying people to do all that is cutting in to your bottom line. And how would you follow up to see the quality of the work done? I have appliances break, it happens. Most of the time a 5 dollar part can fix it. If I don't have that 5 dollar part in a cabinet in my garage, I can get one in 72 hours from ebay. If it is a rush repair, I have spare appliances in a storage building.
How much would it cost to change a leaking flapper on a toilet?
How much to change a light bulb?
How much to change air filters in an air conditioner?
How much to reset a tripped breaker?
How much to fix an HDTV when someone has accidently changed the input?
How do you decide when to toss the sheets and towels or reuse them?
Brooklyn, NY · Member since 2012 · 12 posts · 3 votes
8y
I've been looking into real estate in PR for a while and actually spent a month in Rincón. Lots of nice properties but decided the market was a bit too hot and people were asking too much money. I opted not to buy at the time but have been keeping an eye on the market... also curious how this whole hurricane scenario plays out. If you have cash to buy a place I bet there are some good deals to be had. There is a fairly robust tourism industry there and you could easily find somebody to run your airbnb while you're not there... caretakers are individuals (not companies) who typically work for a percentage of the rental income.
Investor · Voorheesville, NY · Member since 2014 · 13 posts · 5 votes
8y
Thanks for the reply Paul. It is a lot to consider. A quality management company or person to help me remote manage would be important. I understand management costs can be up to 30 percent of the gross rents collected for vacation rentals. I would need to find a great deal for that to cash flow.
Investor · Voorheesville, NY · Member since 2014 · 13 posts · 5 votes
8y
@Jay R.: Thanks Jay. Where you planning on using a managment company? If so did you connect with any? Did you find properties in Rincon cash flow well? The expenses associated with vacation rental concerns me a little with respect to cash flow. Also, were you thinking condo or house? I've been leaning toward condo to lighten the load on exterior maintenance.
Trinidad, CO · Member since 2016 · 1 post · 0 votes
8y
If someone is going to be investing in rental properties in Puerto Rico I would be interested in managing the property for you I presently live in Colorado however I have been trying to figure out a way how to survive financially in Puerto Rico to take care of my aging mother who lives in humacao near Palmas Del Mar Resort send me an email perhaps we can work something out.
Port Huron, MI · Member since 2017 · 28 posts · 8 votes
8y
PR very recently came onto my radar. Whoever in this thread has interest in or has already invested on Puerto Rico, shoot me a message and we can chat some
Fajardo, PR · Member since 2015 · 8 posts · 2 votes
8y
Hey Jarred (and all!)
I live in another tourist area here in PR (Fajardo) and things are starting to pick up a bit. I think these areas will bounce back nicely after Maria. In my opinion, this is such a wonderful place to live full-time, but I know that it will take a while for that market to come back around....until then, the vacation market seems like a good place to be.
Palm Beach, FL · Member since 2018 · 3 posts · 0 votes
8y
I've become very interested in PR for a STR property. Also something we could vacation to as well so a place we really like. San Juan is not on our radar since the hustle of the city is what we'd want to avoid. We are hispanic and beach people, scuba, Kayaking, etc. Though we are not Puerto Rican, being there would not be a stretch for us.
Wife and I will be traveling there next month to look around. I've only been there once for a brief time, wife was there for several weeks many years ago. I'm finding it hard to get current info and a good lay-of-the land regarding this subject. As of now I'm interested in the NW part of the island (Rincon, Aguadilla). Maybe Fajardo too. If anyone here has more info I'm listening.
Fajardo, PR · Member since 2015 · 8 posts · 2 votes
8y
@Orlando Diaz I think this is a solid plan! Obviously, I'm a bit biased, but I truly do believe these markets will be rebounding over the next year. The areas that you have identified are great spots. You may also look at Cabo Rojo/Boquerón area, Humacao, or Luquillo. All have great potential IMO. If you do venture out to the east coast during your visit, let me know!
Palm Beach, FL · Member since 2018 · 3 posts · 0 votes
8y
@Peter Roenke We plan on heading through the east side to end our trip so I will be in touch when I know more, thx. We plan on visiting Rojo/Boqueron area while staying on the west side. Lots to see in limited time.
Lender · Camuy, Puerto Rico · Member since 2016 · 56 posts · 52 votes
8y
@ Orlando Diaz, by day I'm a mortgage banker here in PR , we built a property here to live in years ago and we recently just purchased one (beach condo in Isabela). I primarily work with people from the states looking to invest on the West side ( Rincon, Aguadilla, Isabela etc) and also Vieques. I now spend a lot of time in Isabela and would be happy to answer any questions you have about the landscape on the west side of the island or even meet up when you are in town. Just let me know
@ Orlando Diaz, by day I'm a mortgage banker here in PR , we built a property here to live in years ago and we recently just purchased one (beach condo in Isabela). I primarily work with people from the states looking to invest on the West side ( Rincon, Aguadilla, Isabela etc) and also Vieques. I now spend a lot of time in Isabela and would be happy to answer any questions you have about the landscape on the west side of the island or even meet up when you are in town. Just let me know
Real Estate Agent · Austin, TX · Member since 2014 · 636 posts · 486 votes
8y
I'm posting to throw my hat in this ring as well. I have 16 units in Austin (one of which is an str) and am looking to diversify. Puerto Rico has always appealed to me, and I'm planning on stopping by in a few months to get some eyes on.