All Forum Posts by: Aaron T.

Gene, that is a worst case scenario  for a property in PR. 

1. sorry for your loss of your father and brothers/sisters. 

2. Heir laws would pass the partial owner ship of the deceased down to their kids, so you have to buy them out or get their signature. depending where they live, and age this can be a real hassle. 

3. you have to buy out or get the brothers or sisters to sign off that they dont want the property. this all through a lawyer. hopefully they live on the island as it will make it easier. Notary does not work the same on and off the island.

4. if you decide the fix the property without the above, and they then decide to want the property or sell the property, then you invested all that money that gets split with them. unfortunately even the most honest of family, their claws come out when there is something in it for them. 

I am deciding not to build on family property in PR for some of the above mentioned. I can't get all the brothers and sisters to sign off on a piece of family property, so it will just sit vacant. 

you have many options, but do the research on what you plan on doing. are you planing on doing ACT 60 (the new ACT 20 and 22)? ensure you understand the rules. also understand any income laws in PR, plus any additional tax filing considerations. PR is not the easy button, everything down there is 10x more difficult than in the states. 

yes, please do some homework with a lawyer first. If you sign a contract with someone, and they die, then that house goes to their kids. you then have to fight the kids for it. OR if its a second marriage, you then have to fight two sets of kids. 

In PR even if the kids dont want the property, they are still going to be responsible for it until they sign it away. My wife has been fighting 10+ years for a property their grandfather owned and he has been gone 10 years. There is no resolution in sight.
 

welcome to BP. you can spend all day and night learning here. its a great forum. 

Alex, note the unemployment rate and how it correlates to LTRs. Pile on COVID and now more people are out of jobs. Just be selective with your properties where the bell curve is for income and ensure your purchase price, plus repairs will make you cash flow on that bell curve of income. 

Just be careful of the Heirs laws there. it can quickly turn into a huge mess.

Use your VA loan to buy a 2-4 unit property for nothing down. Live in one unit for free. Use your income to save for the next property. wash, rinse, repeat. never pay for a place to live ever again.

we use the above method. We also use short term rentals as our guests, not long term tenants. 

 Thanks Mindy. Email sent. thanks for the pro tip.

Tampa market is hot. if you have vacancy, then you are doing it wrong. Just be aware of the movement of people not paying rent and evictions. 

you can buy up to a 4-unit with a VA loan. like any other VA loan you have to occupy at least one unit. I tell all my soldiers to buy a 2-4 unit with the VA loan and live for free. Use that money you are not paying rent and stack it up in savings.