All Forum Posts by: Eric Long

Thank you both, @Alex F. and @Steve K.!

Very insightful -- I'm glad I'm not the only one thinking about PR in this way. I have never been there but was just in Cancun for the first time (went there instead of Hawaii due to cost) and made me think of other Caribbean locations to vacation.

If you were to theory-craft a bit on the topic, what would be the most obvious benefits (and downsides) of statehood for PR? From what I understand a lot of the tax incentives will go away.

That's great information @Kathryn Morea! I don't have the keyword alerts setup but should jump on that. I also started following the facebook page you have linked to get more information. I'm up to soaking as much information as possible about PR. I'm looking at the Rincon area if that matters.

I wasn't aware the bankruptcy is over though!

Thanks for the reply!

@Dell J. What would you say that is most similar and dissimilar to the USA from USVI perspective? I'm guessing there may be some overlap between experience in that regard between PR and USVI

I have searched BP forums in a few ways to see what the chatter is about Puerto Rico and the posts that pop up are old. Very surprising. I understand that PR is kind of USA territory but kind of not - which will understandably turn people off from PR as an investment opportunity. But to almost no discussion? Very surprising. 

In no particular order, here are some reasons it appears PR may be a great opportunity. Keep in mind, this is about two weeks of information gathering.

-While not a US state, it is an unincorporated US territory, which means it essentially functions as type of state without all the privileges. But in terms of economy, infrastructure, most laws it is pretty close.

 -Again, while not a US state, if there ever was to be a new state added, I think most would agree PR would be first in-line. I am pretty certain I'll see it become a state in my lifetime

-Temperature and weather is similar to Hawaii (think: cheaper Hawaii option?) and has similar activities. A great vacation spot that is still within the USA.

-Housing appears to be relatively affordable considering tourism is a big economic driver there.

-Since it is a US territory, it isn't considered international investing and most US banks can finance there

Some of the downsides:

-Recently declared bankruptcy

-Infrastructure is still developing. Country in general appears to be developing in that sense too

-Not sure of how well the rule of law is followed, variable outcomes for those living there.

I am not trying to insult anyone from there or familiar with the area with this quick analysis -- I'm just not very familiar and the information is a little sparse. If you are an investor, realtor, property manager, GC, or know more about PR than I do (not too hard to do) and have points, please chime in! I feel like I'm missing something very obvious that makes this less than ideal but it's not very clear to me right now.

If a wholesaler is acting in such an abusive manner, I see no issue outing them as a warning for others in the area. It may have been a genuine mistake on their end, but I have a hard time understanding how someone could be $121,000 on home value?

What would be the cost of installing a new pool? Because instead of paying $20K for a new pool, you are paying $10K for essentially $20K project.

But, as @Dana Whicker mentioned, it depends on the neighborhood and if that is "essential" or not. You can ask a higher buying price but then your pool (*ba-dum-psh*) of buyers may slim down, leaving you with longer DOM.

I currently have a home under contract that I originally thought was going to be a simple live-in flip, but when I started looking at the numbers more, a rental property seems to make more sense. With that in mind, it got me to wondering what repairs I should focus on more in a rental situation? 

For example, in a flip situation I think there would be more value in converting the large half bath upstairs into a full, but in a rental situation that may not have as much value. Further, as a flip, the four bedroom layout may be okay, but combining two of the bedrooms into a large single room, possible master, would have more value but as a rental the extra bedroom may make more sense. 

I can give more details into the property as needed to what may help with the decision making but some basics: I have it under contract for $48K and I plan on a budget of $40K-$50K. I imagine the ARV to be roughly $120K. It is currently a C5-appraised home due to foundation issues and garage stability, which will be addressed regardless of the path the home goes down.

Those who frequently do both, what repairs have you found to have the most value in each situation?

Thanks for the input, @Kenny Dahill! I think I may have been overestimating the difficulty of managing a lone property -- especially one I live in also. It seems that the general sentiment is that one property management is more than easy enough to work on. 

Thanks for the responses, @Thomas S. and @James Wise. 

The reason I am looking for a PM is because I have a full-time job and am not in the area every other weekend already so I am worried I would not be able to give proper attention to everything that may occur. In addition, the cost of the PM is already baked into the deal and it still makes sense.

HOWEVER, it seems that already living in the duplex means I'm halfway there and it would be a good piece of education for the broader process of REI.

I appreciate the responses and it looks like I have more information to mull over!

I just came under contract for a duplex that is managed by the seller's company. I am planning to live in the unoccupied side and was fully expecting to pay for a property manager from the start. However, he offered to keep managing the property. On the surface, this seems like no big deal but I'm curious if there is anything I should be aware of (good or bad) about this setup. It reminds me of situations where a person steps down as a manager for company but remains there and a different employee is now a manager and making changes -- effectively an indirect way of saying the past manager was "wrong". This will be my first property and first time dealing with property management so I'm not too sure what will come up.

As a side note, the other unit's lease is until June, so I can use the next couple months as a 'test' too.

Thanks!