Property in Isabela, PR, investment has not been completed/finalized

[Cesar Cordero]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Plymouth.

Purchase price: $150,000

In the process of buying 1.21 acres in Isabela, Puerto Rico. Isabela is a town on the north west coast of the island. The property, though is not beach front, nor does it has ocean view, is just a short drive from some of the best beaches in the west, which are great for surfing, snorkeling, SCUBA diving.

In the 1.21 acres there is a main single family home (4 br) which was divided in two sections one of which is being rented. There is also an ad on small "house" which is also being rented. I would like to build several (2 - 6) "shipping container" type homes for either short, mid or long term rental.

What made you interested in investing in this type of deal?

This is a family property for which I will be paying 3/4 of the most recent assessment value. Given the location and how the town has been developing it seems like a good investment opportunity for rentals. And even if I do not get into the renting business I can make some profit if I decide to sell the property at some point.

How did you find this deal and how did you negotiate it?

It is a family owned property of which I am one of the co-owners.

How did you finance this deal?

I plan to use a HELOC but would be interested in the thoughts of others in BPs on this approach or recommendations if there are other ways to financing that I should consider.