All Forum Posts by: Aaron T.

How are you structuring ACT 60 around short term rentals? 

Comps are hard to come by and they are very specific to an area. The comp they use may be a couple years old or miles away. You just have to be smart about how to analyze that data. 

Additionally there are many people who either do not want to work here or they are not skilled for the job they say they can do. Again, do your due diligence on the people you work with here. 

There is new proposed legislation that may limit where you an have a STR. They are trying to ban them in residential areas, which by their statistics could put 30%+ out of business.

How are you using ACT 60 for STRs? STRs are earned income and ACT 60 is for capital gains and dividends.

PR is a difficult place to cut your teeth on real estate, but if you can do it here you can do it anywhere.

Best of luck.

On the west side we use Damarys Barbosa with tropical coast properties. 

We had a 10 unit with seller finance a week from closing and the owner backed out on the deal. 

You also have to be careful as the laws here are not what you may be used to on the mainland. You also have to watch out for heir laws that could affect your contracts and ownership. 

Quote from @Caroline Gerardo:

I'm licensed in Puerto Rico. Because Puerto Rico got a recent credit rating (FITCH) of D and Moody's also very low it's not easy.

FHA is available. Conventional also available FULL Documentation. Full Doc is 2 years IRS/PR returns net numbers.

@Aaron T. not just a bank. Many banks won't do them. Santander, Banco Popular, Oriental, Scotia, Citi you might ask and the teller says sure but they are closing none.

More than 4 units is difficult. Small multifamily under $750000 rare. 

The banks down here suck. my last closing took 6 months. I refuse to buy anymore units down here. The politics and BS are not worth it. I will keep what I own here, but will take my capital somewhere else. 

We have STRs in Puerto Rico. Buying here is much like the mainland, because its a territory. If you buy in a foreign land, you will be subject to their local laws, etc... some places to buy you must be a citizen, some dont offer financing to foreigners, etc... just be prepared and knowledgeable on what you are getting into. 

If its a place where the government is not stable, just remember they can come take your land and property with no recourse to yourself. Its just how it works in Latin America. 

Multifamily will probably require 25% down, but its no different than the mainland. call around a few banks to see. I would give PENFED a call. 

Remember you can only get a loan from a bank in PR. PENFED has locations on PR and off.