All Forum Posts by: Aaron T.
Aaron T. has started 43 posts and replied 772 times.
Post: Looking for investor for renovation loan for short-term vacation rental property.
- Developer
- Aguada, PR
- Posts 921
- Votes 278
Be careful how you make a team with a contract, as you dont want to give half your property to a partner under the heir laws.
where is your property on the island?
Post: Puerto Rico- Capital Gain tax zero?
- Developer
- Aguada, PR
- Posts 921
- Votes 278
ACT 60 makes you a slave to the government and the island. IF you dont want to be their *****, then ACT 60 may not be for you. Plus they are making it more expensive to participate. For a majority of people this would not work.
A lot of people think they can buy rentals and claim ACT 60 only to find out that rental income is earned income. I suggest anyone wanting to invest in the island pay for a couple different lawyers time as a consult.
Post: Puerto Rico- Capital Gain tax zero?
- Developer
- Aguada, PR
- Posts 921
- Votes 278
Quote from @Henry Clark:
Thanks going to check it out. Dont mind no electric for little or no capital gains. Have some big numbers I would avoid even if we have to live 180 days in Puerto Rico.
Will need to check it out. My neighbor is Puerto Rican and one of our customers is military and Puerto Rican. Both said they would never move back there.
Bingo. Every islander only comes back to visit family. There is a reason they don't come back, because life is hard and day-to-day life is a struggle in some aspects.
Post: Looking a lender…
- Developer
- Aguada, PR
- Posts 921
- Votes 278
The only way to get a loan in PR is to use a bank in PR or has bricks and mortar in PR (PENFED being one of them). You can try the different COOPs on the island, as they seem to be decent.
Post: Best financing options for STR in Puerto Rico
- Developer
- Aguada, PR
- Posts 921
- Votes 278
You will only find a conventional loan, unless its someone private, but that's not likely due to the heir laws. loans have gotten quicker and you can close in 90-180 days.
STRs are not looked at favorably on the island and they receive not tax breaks. Its earned income.
Post: Out-of-country Real Estate Investing
- Developer
- Aguada, PR
- Posts 921
- Votes 278
Quote from @Daniel Curtin:
Hi Kathryn,Thank you for your input.
Would you mind sharing your contact information so we could set up a time to talk over the phone? I’d love to talk with you more in depth about this.
At a brief glance, I’ve already seen a few multi-families where I’m staying in Hato Rey for $55,000+. I haven’t done much hard analysis, but when I see new Porsches parked outside on the same street and see what rents are going for, my interest was piqued. However, it almost seems too good to be true.
- Dan
remember that Porsche may belong to a kid who inherited his family land and does not pay a mortgage. This is not uncommon down here.
Post: CPA recommendations for PR STR
- Developer
- Aguada, PR
- Posts 921
- Votes 278
Good luck, we are already on our 4th CPA on the island.
Not many tax breaks for STR on the island. All the breaks go to LTR and ACT 60 (Cap gains, interest income).
Post: New to Investing. Looking for guidance
- Developer
- Aguada, PR
- Posts 921
- Votes 278
Quote from @Scott Brick:
Quote from @Aaron T.:
Quote from @Khyati Zala:
I'm a nurse practitioner looking to broaden my financial horizons. I've been following BP for years and I think it's time to take a leap into investing. The New York market seems really difficult to break into since the prices here are outrageous. I do have many ties in Puerto Rico and ultimately would like to move down there. I know the short term rental market is hot and am wondering what's the best way to start out. Any advice is greatly appreciated.
Depending where you buy on the island, the short term rental market is saturated. Additionally, I am seeing a lot of STRs now being advertised as MTR or LTR. There are several reasons for this. If the government passes the new bill advertised early last year it will potentially shut down 30% of STRs.
Aaron,
Can you elaborate on the "new bill" What exactly does it entail? Thanks Scott
Its been reported in the news for the past year, although its hard to find any PR government document that states the details. If this passes, there could create a BNB crash on PR, or move it into the black market cash business. However, it may not be able to be booked through booking platforms. only time will tell.
https://newsismybusiness.com/house-bill-looking-to-regulate-...
Post: West Coat Puerto Rico Airbnb Bubble?
- Developer
- Aguada, PR
- Posts 921
- Votes 278
You do not qualify for ACT 60 in the STR market. Rincon is saturated with STRs and we are seeing more and more moving from STR to MTR or LTR. I will not buy anymore in PR. we are currently looking at other places where the ROI could be better or quality help may be better.
Post: New to Investing. Looking for guidance
- Developer
- Aguada, PR
- Posts 921
- Votes 278
Quote from @Khyati Zala:
I'm a nurse practitioner looking to broaden my financial horizons. I've been following BP for years and I think it's time to take a leap into investing. The New York market seems really difficult to break into since the prices here are outrageous. I do have many ties in Puerto Rico and ultimately would like to move down there. I know the short term rental market is hot and am wondering what's the best way to start out. Any advice is greatly appreciated.
Depending where you buy on the island, the short term rental market is saturated. Additionally, I am seeing a lot of STRs now being advertised as MTR or LTR. There are several reasons for this. If the government passes the new bill advertised early last year it will potentially shut down 30% of STRs.