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Nov
6

 

Investing in P.R.
Permalink 5 comments Puerto Rico


In recent weeks I have increasingly begun exploring the option of purchasing an investment residential property in Puerto Rico. Particularly a "fixer upper". I:

  1. Like rehabilitating homes
  2. Like Puerto Rico
  3. Like the idea of passive income
  4. Consider myself a good property manager, and most importantly;
  5. 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.

5 Comments:

meilinPR said:

In the picture: is that the ocean (or sea) in the background? That house, then, has a view. And since it's high in the mountains (right?), then it won't be intolerably hot. Sleeping in a house on the mountains with the windows open... mmmm.

I kind of dig those sort of porches (the ironwork on the one pictured, though, isn't very nice), they beautify and add a touch of uniqueness to what would otherwise be an ugly cement box. My home has a nice interior layout, but I find the facade ugly because it's so rectangular...

The half-wall (así es como único se me ocurre llamarlo) on the roof makes me think that space was used in some way, maybe to get some fresh air and for entertaining guests. Do you think its peculiar design might give a clue as to when it was made?

Luis said:

That "half wall" is called a parapet. It's purely decorative, though at times they used to use it to hide stuff like pipes, tubes, or air conditioner units. It also makes the home look taller.

I haven't "scoped" that unit. Just searched for a random photo of an abandoned home.

I'm guessing maybe at the latest 1950s or 1960s?

meilinPR said:

Se me ocurre ahora que tal vez se suponía que hubieran tubos entre los bloquecitos que sobresalen en el techo. Esto formaría una baranda. He visto algo así en otras casas en PR. Quizás no añadieron los tubos porque decidieron que no combinaría con la reja en el balcón, o porque no les dio el dinero, o tal vez les pareció que se veía bien así, o quizás se mudaron/vendieron la casa cuando terminaron la semi-pared. Hmm.

As an aside: I hate wall-to-wall carpet. It: has to be replaced from time to time, requires a vacuum cleaner to be cleaned properly, has dust and odors cling to it, can get stained easily, etc. Ceramic tile is so much better, especially in places where it never gets cold.

meilinPR said:

Yes, I figured it was a random house.

Right, a parapet, like those on castles. Our house has one, mom calls it alero. I remember having a neighbor who put some chairs and a table on his. But in Caguas, the sunshine is too strong to use the rook like this. I wonder if the house pictured had a decent backyard - if not, maybe they used to roof for parties and stuff. I would do that >.>

Luis said:

Y imaginate una alfombra con la humedad y calor que tiene Puerto Rico.

No es una semi-pared, coño. Parapet!

Y la casa es de Vieques.

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