In recent weeks I have increasingly begun exploring the option of purchasing an investment residential property in Puerto Rico. Particularly a "fixer upper". I:
- Like rehabilitating homes
- Like Puerto Rico
- Like the idea of passive income
- Consider myself a good property manager, and most importantly;
- Have begun developing an interest for historic preservation (or at least architecture that pays homage to the "historic")
Why Puerto Rico as opposed to a stateside location? Well, first of all, I feel like I can get more bang for my buck. There are plenty of abandoned properties in Puerto Rico made of sturdy cement and sitting amongst a bed of vegetation. Whether it's due to migrants leaving the island during the 1980s or inheritors who don't know what to do with grandma's house, the landscape is riddled with vacant, neglected homes. There's just more supply.
Secondly, working with repairing homes through my work in both Puerto Rico and the U.S., I feel that the rehabilitation costs are a lot lower in Puerto Rico. Floors are simple, mostly just tiles placed over a flat cement floor. Stateside floors include carpeting, hardwood finishes, sub-floors, joists, and foundations. Puerto Rican homes have flat roofs with stucco ceilings. Stateside homes have shingles, OSB, chimneys, drip edges, flashing, gutters, soffit, fascia, blah blah blah. Since most Puerto Rican homes are made of stucco, ceramic tile, and cinder blocks - materials that can withstand thirty years of neglect. Punch a hole in a stateside roof and the home is mush within a period of years.
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