All Forum Posts by: Mark Rider

Do you have a web address for 1st bank? Seems to be a lot of “1st bank of....”in a google search. Thanks

Hello BP,

I want to purchase an investment property in Puerto Rico using my SOLO 401k. In the 50 states, I need to use a non-recourse lender, however, of my choices, these lenders do not offer financing in Puerto Rico. Can someone assist with location a lender who I can use?

Thank you,

Mark

Hi Scott,

We've been traveling to Rincon annually for the last 5 years. I considered investing too because I like to visit there. What turned me off is that almost every cow pasture is for sale in rincon, even the one in front of Tres Palmes, the marine reserve. I've also heard a lot of the public beaches are going private so beach access could be impacted in certain areas. In Aguadilla at "wilderness", a world class surf break, a resort that was being fought for 10 years may break ground now. I would travel there at least 10x before I'd write a check. Try and get as much input as you can from people that live there and undestand that politics down there can be shady. 

@Robert Soto, the market in Rincon is saturated with AIRBNB. Check out Isabella near Jobos Surf break and Shacks Beach. Note that many public beaches could convert to private owned as PR is trying to raise money. This could mean loss of beach access in some areas. Stay abreast of the news and politics and developments as things can be shady down there.

I should've have mentioned that we have a triplex. (2) 1 bedroom apartments and a 4br house. We rent the 2 apartments year round and do Vaca Rental on the main house. This way we have multiple streams of income. This also alleviates the pressure of just taking any guest and holding off for quality. Just want to make sure everybody is happy.

I have a Vacation Rental in AC, NJ. We use it as our second home and the NJ tax rule states that I can rent it 14 days/year tax free. Since AC is a weekend destination this works in my favor as 7 weekends are more income than 2 full weeks. 

We have a SFR; for a condo check the bi-laws as many places don't allow short term rentals.

Is this your first property?

What does your real estate portfolio look like?

The quality and location of the property will determine demand and if you get good or bad guests. neighbors don't like party houses.

The "cash flow rule" (and I'm not sure how you define this "rule") is only one piece of the pie. 

More downpaymentreduces loan interest paid and reduces the minimum hazard insurance requirements but It reduces liquidity which is so important in life. 

Also, placing a rule of assuming 100% financing is not something to do every time unless you intend to do 100% financing which I don't recommend. Do the calculation based on the loan options you have. 

No one house and tenant are alike and despite what it seems, it's a grind to make money on both the front and back end so start small so you can learn all the **** a blog can't teach you. 

Keep in mind, the longer you "buy and hold", the more money you will fork out in repairs and upgrades. A brand new Home Depot kitchen today is dated in 10 years. So you may as well add 

new kitchens, 

baths, 

maybe a roof, 

probably a hot water heater, maybe an HVAC,

maybe siding and Windows, definitely floors unless you go tile... 

to the "cash flow" model if your looking long term or expect to lose in appreciation rates relative to the guy up the street that just sold brand new trendy stuff. 

"Less is better than more, sooner is better than later"

Steve,

Thank you for your input. Yo bio with regards to land investing is intriguing. I'm drawn to the mountainside land opportunities in Puerto rico. With very low taxes it looks to be a good buy and hold strategy until we are ready to build. I'm in the planning and research phase so we'll see what my homework shows.

Renting in an area before buying is very wise advice. I can remember on several occasions that the first deal looked like the best deal at the time and after digging deeper it was a bad deal and a better one presented itself. I'll check out "international living" as well. stay in touch. Mark 

Hello Everyone. I'm new to this blog and am intersted in moving to Rincon, PR. We have travelled there several times and are considering packing up and not returning. I would like to start a business as well. How are you all making out with your Real Estate plans? Has anyone closed a deal recently? I'm looking at residential, commercial, and land. My timeline to close a deal is between 6-18 months. can anyone share some insights into thier experiences so far? Thanks, Mark