Paying Cash for Investment/Vacation Property in PR?

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ravenmickey

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Every couple months I go to Puerto Rico to visit family and once seeing how much cheaper the houses are there, I got the idea in my head to buy a home as an investment and eventually vacation home. I am interested in buying a foreclosure property in Puerto Rico and would prefer to pay for it in cash seeing the asking price is $52,500. I am aware of the risks involved for repairs/renovations and have family that I can depend on for that in PR.

I would like to know if the process of buying a foreclosed home owned by the bank is pretty much hassle-free seeing I'd be purchasing the foreclosure from the bank. Incidentily, I was pre-approved at Banco Popular at 6.25% but once I did the math I see that the interest would be almost be as much as what I paid for the house in the end. Which is why I am seriously considering paying in cash. Any advice would be greatly appreciated!
 
The purchase of property is the same process regardless of the present owner. In this case, it's the lender that foreclosed on the property. It's probably smarter to hire a real estate lawyer down there since a realtor isn't necessary and they will usually work for 1% fees rather than the 3-6% a realtor will take to do the same paperwork for you.

Yes, paying cash for anything saves you large sums in interest, however, without a mortgage you also don't have the tax deduction benefit...do the math and see which makes more sense for you. The alternative is to put more down to reduce your interest rate since you have the cash, and the best thing in the world for your credit rating is to take a mortgage but pay it biweekly and off early...5 years instead of 15 or 30 will sky rocket your rating.

Good luck...we've been looking in the USVI for years...it's great down there!
 
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