All Forum Posts by: Pamela P.

@ Dennis - Thanks for the great feedback. I have definitely understand the spotty signal, especially since my condo is right on the beach. I've had the cable company come out twice already to fix the connection - mind you I've barely had the property for three months. My hunch is that this will be a recurring theme. There is a Kwikset retailer in Fajardo and I plan on speaking with them in detail about the pros/cons of using their device from afar. From my understanding they have a support center that can help with connection issues.

@Bair - Yes, I've read great things about Kwikset. My concern is that someone will accidentally forgot to close the lockbox properly and then any 'curious' neighbor will have access to my unit. Luckily the building has cameras on every floor so it would be easy to see who access the apartment.

Thanks again for your feedback!

Hi there,

My cleaning lady is going on vacation in mid-Feb and I have guests arriving while she is gone. I'm willing to pay a referral fee for a good cleaning lady.

Please message me. Thanks!! 

So I finally closed on my property! Now it's renovation time!

Depending on what kind of a property you purchased and its as is condition, will determine the level of renovation work needed. I purchased a studio condo in a gated community. Choosing an apartment with a management office proved to be so much more helpful then I originally anticipated. My management office is very well connected and provided several great referrals from plumbing to electrical to cleaning services.

Timeline... Even with these great referrals, the renovation process was slow. The apartment I purchased didn't need THAT much work yet it took a month to get everything updated. The major changes were: flooring, sliding door replacement, and balcony railing replacement. The remaining items were cosmetic. The flooring took almost a week to put down. Remember I only have a studio. As for the balcony and sliding door, I had to wait almost three weeks to have them replaced. There is no such thing as a rush order in PR. I offered to pay more to have everything done while I was in town, but it simply was not possible. While you can try to pre-plan as much as possible, there are certain jobs that contractors will not start until you are in town. From there build out 4 weeks to get the job done.

Guests... If you're like me, then you're likely want to self-manage the place while living out of state. Currently I am using a simple lockbox to store my keys. When guest book their stay, I provide them the code to access the keys. While this method is working, it's not ideal. If a guest loses the key or forgets to lock the lock box properly, then someone else can enter the apartment. My next trip to PR is in February and I will likely be installing a keyless lock that can be managed via my app. The company is called Kwikset.

This has been my experience thus far. As time passes, I can update everyone on my experience of self-managing an out-of-state vacation rental. 

Thanks for reading. Feel free to reach out with any questions.

Hi Juan,

Just curious. Why are you stuck on flipping in Queens? I live in Queens too, but I'm looking to flip in CT where homes are more affordable therefore financing is easier. From the math I've been doing, the flips in CT will offer larger spreads (eg profits) vs the metro area.

Yes, I'm managing everything from NYC. I'm a fortunate because I have a relative who lives about an hour away from Luquillo and he checked up on the place while it was under renovation; however, even if I didn't have him, it's still doable. To give you an idea, I closed 10/30 and had my first guest arrive on 11/30. The apartment needed a lot of updates but nothing too major. I replaced flooring, sliding door, balcony railing and some electrical work. The rest was cosmetic work. Since then all of December, January and most of February is already booked. I hope that I can continue to maintain this pace. 

Buying a property in PR has been the most exciting thing I have ever done. Though I would be lying if I didn't saying it was also an aggravating process. Anyone who is considering buying/investing in PR should read this post. First, finding a full-time real estate agent is like finding a unicorn. Unfortunately after the 2008 recession, PR was hit so badly that being a full time real estate agent was no longer a viable option. Plus, PR doesn't have a standardize system like MLS, making the agent's job that much harder. If you are working with a buying agent, then he/she will have to call every listing agent to verify if the listing is still available. In many cases since there is no checks and balance, fake (pull ads) dominate the marketplace thus causing time wasted and extra work on the agent's part. Therefore, most real estate agents work part time (or less). If you really like a property, then reach out a couple of times to the same agent. Verify the exact address and ask for updated photos. It will show that you are serious. Also, if you do find a good agent that responds to your calls/emails, KEEP THEM! Even if their responses are slower than desired, this is just how business is done in PR. The sooner you accept the island-life work ethics, the easier this process will be for you… trust me. Lending… forget the ‘big box' banks – they do not lend in PR. There are a small pool of lenders that offer financing and because of that it drives up the interest rate. You can expect anything from 5.5% - 6.5% depending on capital, credit, etc. Also, the approval process can take about 3-4 months, expect to provide additional supporting documents every 2-3 weeks. All closings have to be done in person which is super inconvenient because they don't give you a closing date until the 11th hour. Flex your negotiating skills… You'll notice many properties have been sitting on the market for 6+ months. Interestingly, when I put an offer for an apartment in San Juan, I was suddenly in a "bidding war." This was very odd to me since it seemed like an opportune time. I decided not to move forward on that property. Then when I saw the property in Luquillo, I asked about other offers, which the agent confirmed none had been placed. Again, I put my offer and suddenly I was in another "bidding war." Don't let this tactic scare you into driving up the price more than you are comfortable with. Be ready to walk away if in fact there is another bidder. However, if you are placing a bid on a property that has been sitting for months with several price reductions, then it's likely your offer will be accepted… it'll just take some time. One week in fact. I learned AFTER I placed an offer on the Luquillo property that PR law allows sellers up to a week to respond to a buyer's offer. Clearly this is important to know in advance or else you'll think that the seller decided to go with another offer if you haven't hear from the agent after a couple of days. That is what happened to me, which is why I ended up paying $5K more than I would have liked for my apartment. Lesson learned for next time!

 Thanks Dennis! I did know about this site, but I didn't realize local use it to also rent properties. I thought it was strictly for selling/buying properties. Thanks!

Monthly cash flow is difficult to estimate since seasonality plays a key role. However, my 1st year estimation is $6,000-$7,500 (profit). This is after monthly cost, maintenance and taxes. Amortization is $94/month. I'm uncertain about the depreciation rate. As for the rate of appreciation, this data in PR is limited, but I know that I'm purchasing this condo $30K less than current appraised value. 

 PR properties are very inexpensive right now, which was a big appeal. Plus, Culebra has consistently been ranked top 10 most beautiful beaches in the world. My condo is less than 20 mins away from the boat that takes tourist there everyday. I plan to use the property as a vacation rental. 

And yes, I do agree US is more stable, but usually more stable = higher home prices, which unfortunately with my limited capital, I cannot afford. If you have any suggestions where in the US I can find beachfront property for less than $70K, that has steady tourism, then please share with me! :) I'm still new and learning. I'm open to suggestion on market opportunities that I may be missing. Thanks!

 Hi Jeff - Thank you for taking the time to provide these articles. I definitively did research before deciding to move forward with the buy. While it's unfortunate that PR's request for debt consolidation/restructuring was rejected in June, my target audience are vacationers. The beachfront (19th floor) condo, currently a studio but is big enough to be converted into a 1BR, is located in Luquillo, which is surrounded by PR's biggest tourist attractions. Plus, the property was just appraised and it came in $30K more than what I'm paying. My goal isn't to sell it, and if I did, it wouldn't be marketed to locals but rather others looking to buy a second vacation home. Luckily my uncle lives less than an hour away from the property so he will be helping me manage the property.