First Investment Deal — Duplex $391K with Potential to Appraise

Hey everyone,

I’m currently evaluating what could be my first real estate investment, and I’d love some insight from the community before I move forward.

The property is a duplex listed at $391,000 in Puerto Rico. Based on local comps and the scope of planned renovations, I strongly believe it could appraise around $550K–$700K once completed.

Here’s the bigger picture:

• After renovation, I plan to convert the duplex into a triplex to increase income potential.
• The lot is large enough to build an additional 4-plex, which opens up multiple exit or income strategies.
• The property could function either as a short-term rental (mini-resort style) or as a long-term rental community with controlled access and shared amenities.
• Location is strong and demand for both STR and LTR units is high in the area.

My main question is:

Do you think this is a good move for a first investment property, considering the potential forced equity and scalability?

I’d also appreciate any advice on:

• Whether it’s better to hold this as a BRRRR-style long-term project or refinance and scale into new builds.
• Financing strategy suggestions (I’m eligible for VA and possibly FHA options).
• What red flags or hidden costs to look out for on a deal like this.

Thanks in advance for any feedback.  I want to start my investing journey strategically, and I’d really appreciate input from those with experience in multifamily or value-add projects.