Puntas, Rincon Sandy Beach Property

Overview

Prime investment opportunity located directly across from Sandy Beach in Rincon, Puerto Rico. This three-level multifamily building offers four separate units with a total of 5 bedrooms and 4 bathrooms. With strong existing performance and significant upside potential through strategic renovations, this property represents an exceptional investment with favorable purchase terms.

Property Overview

This property is located in Puntas, Rincon, Puerto Rico, directly across from Sandy Beach. It features a three-level multifamily building with four separate units, offering a total of 5 bedrooms and 4 bathrooms. The land size is 973 square meters (10,473 sq ft) with a building size of 1,728 square feet.

The previous owner reported annual revenue of $100,000, representing a 9.1% gross yield. With strategic renovations, there is potential to increase annual revenue by 74.9% to $174,900, making this an exceptional investment opportunity with favorable purchase terms including 0% interest financing.

Property Features

✓Prime location directly across from Sandy Beach in Rincon

✓Three-level multifamily building with four units

✓5 bedrooms and 4 bathrooms across 4 units

✓973 square meters (10,473 sq ft) land size

✓1,728 square feet building size

✓Favorable financing with 0% interest

✓Strong existing performance with $100,000 annual revenue

✓Potential to increase revenue by 74.9% to $174,900 with renovations

✓Multi-unit configuration for operational flexibility

✓Act 60 tax incentives enhance after-tax returns

Market Annalysis

Active STR Listings 1696

Occupancy Rate 60% (+4% YoY)

Average Daily Rate $251.90 (+3% YoY)

Annual Revenue $29,800 (+3% YoY)

Seasonal Trends

•Peak Season: July-August (90-95% occupancy)
•Shoulder Seasons: Spring and Fall
•Low Season: September-October (70-75% occupancy)

Purchase Terms

Purchase Price
$1,140,000
Down Payment
$170,000 (15%)
Initial expenses & closing costs
$40,000
Total upfront investment required at closing
$210,000
Financed Amount
$950,000
Interest Rate
0%
Monthly Payment
$3,000/mo. toward principle reduction
Term
6 years (72 months)
Balloon Payment
$734,000

Revenue Potential

Current vs Potential Revenue
Current Annual Revenue
$100,000/year (current)
Potential Annual Revenue
$174,900/year (after improvements and operating efficiencies)
Revenue Increase
74.9%
Returns
Cash-on-Cash Return (Year 1)
21.3%
Total Return (6 Years)
611.6%

Annual Expenses

Property Tax $8,000/year
Hoa Fee N/A
Management Fee 20% ($34,980/year)
Utilities $12,000/year
Insurance $9,000/year
Maintenance $8,745/year
Cleaning $15,000/year
Marketing $10,000/year
Miscellaneous $5,000/year

Renovation Strategy

Our renovation strategy is guided by three core principles: preserve the location advantage, elevate the guest experience, and maximize ROI by prioritizing improvements with the highest impact on revenue and guest satisfaction.

Total Budget

$150,000

Annual ROI

49.9%

Payback Period

2.0 years

Phase 1: Immediate Improvements
Months 1-3
Budget: $50,000
✓Ocean View Optimization - Tubular balcony railings, trimmed vegetation
✓Curb Appeal & Entry - Fresh coastal paint palette, modern lighting
✓Outdoor Living Spaces - Enhanced outdoor shower, shared lounge
✓Interior Refreshes - Fresh paint, kitchen refresh, updated fixtures, new furniture

Phase 2: Rebranding & Experience
Months 4-6
Budget: $25,000
✓Property Identity - Distinctive name and brand identity solidified
✓Digital Presence - Website with direct booking, professional photography
✓Technology Integration - Smart locks, thermostats, reliable high speed WiFi
✓Amenity Packages - Beach equipment, premium products, tour and excursion sales

Phase 3: Strategic Enhancements
Months 6+
Budget: $75,000
✓Kitchen Upgrades - Quality countertops, new appliances
✓Bathroom Renovations - Glass shower enclosures, rainfall showerheads
✓Outdoor Experience Expansion - Rooftop terrace, hot tub or plunge pool
✓Additional luxury amenities to maximize guest experience

Expected Outcomes

Revenue Increase

74.9%

ADR Improvement

20-30%

Occupancy Rate

65-70%

Guest Rating

4.8+