All Forum Posts by: Nora Davila

@Jordan Delacruz I’m glad to see more activity about PR. 2  years ago when I joined with BP pro membership there were limited resources and investors in PR. I analyzed many many deals and the returns in PR were the best ones! 

I really like PR west coast. I was looking in Rincon by the end of Jan, but did not find a good deal. I would consider also Aguadilla, Isabela. Any insights on the rental market? Does the 1% rule stands, etc. thanks!

I have two investment properties in San Juan and the ROI is great! You need to be very familiar with the area. It is one market where the 1% rule still holds, with high quality tenants.

Hi Alex, I started investing in PR RE over a year and half ago. I'm also from the island and we have boots on the ground now. It was really hard in the beginning like everything, but the ROI in great. Now I'm in the process of taking benefit of all the tax incentives (his how I found your post). So far I'm invested in San Juan, but I also looked at Rincon and Mayaguez. There are tons of opportunities. Good luck!

Thanks @Nico Murillo for your reply. I read the book earlier this year and totally missed that part. I wish I could visit, but I could not find any opportunity since everything on online now. 

Good question. The prices here is SJ still high and the rent is not matching the price. The only way this market makes sense is buying and renting per rooms or Airbnb. Do have any more insights about the area? Let's connect.

Does anyone has experience bidding in tax defaulted properties in San Jose, CA? 

I have been analyzing a lot of possible deals in these market with no luck. Recently, when it was time to pay my own property taxes I learned about the tax defaulted properties. The city does a public auction on a property not paying property taxes after 5 years. I think this will a route to invest in rental property. I read the info of the auction site and checked the list of current properties. The numbers make sense for some of them if I pay cash, rehab it and then rent it. I know it is risky for a first timer dealing with auction, but I believe that you have to start somewhere. Otherwise I will still be a first timer auction investor 5 years for now. 

I would like to get more info on the process: 

1. Is there any guide or book out there in this topic? 

2. What to look for in terms of the public property information?

3. Who should I contact to assist this process for first timers? The process is meant to be completed online (no human interaction). A real state attorney? The city office?

4. The total payment is due on the same day if you are the winning bid. How long do I have to wait until the property is officially mine?

Thanks!

Nora

Hi Albert, Thanks. It is a trailer type. The waste is connected to the regular sewage line in the lot where it is parked. Feel free to connect directly if you want to know more.

Investment Info:

Mobile home buy & hold investment in San Jose.

Purchase price: $55,000
Cash invested: $15,000

My 1st investment. Mobile trailer for short-term rentals, rented on Airbnb. Low maintenance cost and low CapEx. Currently self-managed so the returns and cashflow are great!

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

I knew I wanted a trailer later on. So instead of getting it as a liability I got it as an asset. I ran the numbers and they convinced me.

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

I talked to a couple, which I consider to be experienced investors, they told me how they pull together a similar deal. Once I knew exactly what I wanted, I researched the market, compared new vs. used, holding value and then negotiated hard with two dealers to get a reasonable deal.

How did you finance this deal?

Bank financing for 15 yrs @ 4.5% with $10k down.

How did you add value to the deal?

I added few touches for a comfortable, cozy environment. I provide everything the guests need. As part of initial investment, I got high quality trailer with high-quality bedding sheets, towels, dinnerware, etc.

What was the outcome?

I have bookings whole year. It is very popular, and people like to stay just for the experience. I am very happy with this investment. The cashflow varies per season; on average I get approximately $800 per month to be conservative.

The main outcome of this deal for me was that I started small and it gave me confidence I needed it to go out and look for more deals.

Lessons learned? Challenges?

Lesson 1: Create a space that you feel comfortable living in, so others will find it attractive too.
Lesson 2: This rental type is not for everyone. It takes a little bit more energy and creativity to market it and also good screening of the guests.
Lesson 3: Negotiate everything! even small details with minimal cost. Soon after I learned that all those smaller costs add up.
Lesson4: For this type of investment consider going out of state for pricing.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No

Investment Info:

Mobile home buy & hold investment in San Jose.

Purchase price: $55,000
Cash invested: $15,000

My 1st investment. Mobile trailer for short-term rentals, rented on Airbnb. Low maintenance cost and low CapEx. Currently self-managed so the returns and cashflow are great!

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

I knew I wanted a trailer later on. So instead of getting it as a liability I got it as an asset. I ran the numbers and they convinced me.

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

I talked to a couple, which I consider to be experienced investors, they told me how they pull together a similar deal. Once I knew exactly what I wanted, I researched the market, compared new vs. used, holding value and then negotiated hard with two dealers to get a reasonable deal.

How did you finance this deal?

Bank financing for 15 yrs @ 4.5% with $10k down.

How did you add value to the deal?

I added few touches for a comfortable, cozy environment. I provide everything the guests need. As part of initial investment, I got high quality trailer with high-quality bedding sheets, towels, dinnerware, etc.

What was the outcome?

I have bookings whole year. It is very popular, and people like to stay just for the experience. I am very happy with this investment. The cashflow varies per season; on average I get approximately $800 per month to be conservative.

The main outcome of this deal for me was that I started small and it gave me confidence I needed it to go out and look for more deals.

Lessons learned? Challenges?

Lesson 1: Create a space that you feel comfortable living in, so others will find it attractive too.
Lesson 2: This rental is not for everyone. It takes a little bit of creativity to market it and also good screening of the guests.
Lesson 3: Negotiate everything! Back then I negotiated aggressively, but I only focused in the purchase price, I forgot small important details thinking their cost was minimal. Later on all those smaller costs added up. Also, I should have go out of state for pricing

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No

Hello BP community. I recently closed on my 1st property in Puerto Rico. I am looking for the lease agreement form. I have BP pro but there are no forms for Puerto Rico. I was wondering if anyone has experience with leasing there or have a form or an idea on which other state is similar and I could use. Thanks!