All Forum Posts by: Aaron T.

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. 

Quote from @Karelyn Cruz:

I second @Alvin Clay's question. I'm also looking for a CPA or accountant with tax law experience with investment properties in PR. Any recommendations? 

 We have been through 4 accountants down here in PR, most dont know their jobs or are lazy. We even ended up with fines because the accountant did not do their job. 

The CRIM is hit or miss. I have found that 1 in 10 people in PR actually know how to do their jobs. then finding that 1 that is willing to help is another challenge. 

STRs are not recession proof. You can see this is the booking data right now. Since October many areas bookings have fallen off a cliff. When guests have to chose between food, gas, etc.. or going on vacation, you better be offering a lot of value and have good marketing to get them to come. 

If you can pay your bills with guest income through this recession, then you are still in good shape. 

I have seen a lot of STRs lately for sale. or seeing a lot of furniture sales from STRS. or the STRs are moving more to medium term rentals. You have to flex as the economy flexes. 

According to Airbnb they dont have to disclose it, but its good practice. Try to charge a pet fee as well. IF its truly a service dog, then ask them the two golden questions for service animals. 

This idea turns into a full time job if you dont have the right crews/teams in place. we manage STRS over 4 time zones and its really tough between guest relations, maintenance, cleaning, etc... If you dont have the right people in place it is a nightmare. 

We use ownerrez. It gives owner statements at the end of the month with their income, expenses, etc... 

Just be careful if you plan to do short term rentals. The San Juan area is pretty saturated and because of that there is no proposals out there to limit STRs and even eliminate STRs in residential areas. Its an idea that will backfire, and possibly cause harm to the tourism industry of PR. 

We will continue to follow the news down here.