Investor · Madison, WI · Member since 2015 · 51 posts · 13 votes
Hi, My name is Yashira and I'm new in the community. I'm originally born and raised in the beautiful warm island of Puerto Rico but moved for graduate studies and stayed in the bitter cold (but beautiful) Wisconsin.
I visit often PR since my entire family is still living there and have been interested in buying a cheap (~50K) property close to the coast that we can rent as a vacation property and have a nice place to stay in our visits. Not looking to make a lot of money but perhaps perhaps breaking even or have a small positive.
Will be very happy to get your opinion.
My father is a retired handyman very happy to help with the maintenance and my mother is really good at advertising.
Hi there. Welcome to BP. $50k inland is doable. In the coast is tricky as for nicer and more appealing areas for vacationers the real estate sky rockets. Areas outside the metropolitan area that could be of interest are (in the west): Cabo Rojo, Boquerón, Aguadilla, Guanica, Isabela and Vega Baja. From these the high traffic areas (especially during summer and Easter seasons) are definitely Boquerón, Cabo Rojo and Aguadilla. Boquerón and Cabo Rojo the traffic comes from tourists, college students and even the same puertoricans. These are just great places with nice beaches to relax and take vacation. Aguadilla is known for their perfect "tubed formed waves" which are a high traffic. This attracts a ton of surfers from all over the world. I think there are condos in Vega Baja within your price range and very close to the water. To the east side of the island, Ceiba, Luquillo and Fajardo are nice. These areas are more recreational for boating, fishing and golfing. Adjacent small islands with ton of potential are Culebra and Vieques. Not sure how is the appetite for vacation real estate there but definitely an option. So in summary, yes a $50k-$75k is doable. Make sure your asset is visited regularly to keep an eye for theft, vandalism and squatters. Also depending on the area, vehicular traffic could be a nightmare. It is better to pick a place more accessible to your Father for repairs.
On a different note, keep in mind that the island still recovering from the 2008 financial crisis, unemployment remains at all times high at 14%, many corporations have closed shop (to never come back) and the economy is experiencing a tremendous exodus of professionals. Most puertoricans are demanding a better pay and coming to the US. This is putting pressure to the real estate market down there. Is you are buying cash, this will give you more leverage during your negotiations, but don't count on appreciation... Is simply not there (yet).
I personally own real estate there as buy-and-hold. The rental market is strong. Screening tenants is challenging but doable.
Mainland banks won't do loans in PR. This article has some good info: https://www.linkedin.com/pulse/20141111173110-2770865-14-things-we-learned-buying-a-home-in-puerto-rico?redirectFromSplash=true
Hi Kirk, If you still have an interest in obtaining financing in Puerto Rico please let me know as I'm with a mortgage company that can help.. The process here is very similar to what you would normally see in the states.. There are many properties available as well
There's cheap properties all over the island at the price range that you're looking for, I See them everyday. In the East part in most cases the properties are more well kept.
I recommend multifamily ones/two stories. Some friends & Inveators are doing AIR B&B and making great returns in their investments.
Real Estate market is booming & the timing is right to buy. I'm a Keller Williams Real Estate agent here in the Island. If you still need help Feel free to call me if you have any questions @ (787)515-0894.
Hello @Yashira Zavala great thread, I'm interested in hearing if you were able to find an investment property on the island.
Just like @Catherine W. story, my wife and I got married in PR over a year ago and have been in the market for investment properties. She currently lives there while I live in California.