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Updated almost 2 years ago on . Most recent reply
Heloc to buy Airbnb in PR
Hey guys, i have a Duplex thats cash flowing. Bought it for 225, 200k still on mortgage. Its now valued at 360k. HELOc is letting me access 100k, was going to use a portion of that to buy an ocean view apartment in Puerto Rico west side for 280k. (2bed 2bath)
My question is have I missed the boat on airbnb? Rents for around $200 a night BUT complex HOA has 4-5 night minimum on str's. Hoa's have always made me nervous.
Also investing in Puerto Rico! A lot of tax incentives, my family lives here in metro area. Its in Isabela pr, I don’t think the property will appreciate well its the str rental income im after and enjoying the unit for myself.
Also contemplating not getting an apartment and going even bigger maybe a 1.5 mil duplex triplex in a more visited part of the island.
Hello Matt,
While nothing is certain, AirBnB has become much more competitive because well so many people have been doing it, increasing competition.Also, many state localities have started banning them.
The second option is also reasonable. Try to run numbers before you proceed. Best of luck to you!
There is no 'missing the boat' with airbnb. We run an airbnb fund that has only seen improved performance in the past months.
It's all in how you run the properties and how you use competitive pricing, effective marketing, and manage your expenses. Our group is more institutionally sized so that does differentiate, but traffic for our listings is still very high.
Generally an HOA is a dealbreaker for me. They can be a pain to work with and if they're sticklers can definitely cause tons of headache and have lots of fines.
A lot of people have said that the STR market is over-saturated but I have to disagree. The market is more competitive as there are more players in the game and it is becoming more accepted as an asset class you see more institutional-style players. I think both options are a great choice and it really comes down to the numbers. Which option is closer aligned with the amount of time you want to put in and the return you are looking for.
Be careful when you say tax incentives. not everyone qualifies and if you do, you will be selling your soul to the corrupt government of PR. Please do your homework before committing to anything in PR.