I think it is a solid plan. Sounds like you wont have any trouble short term-renting it out.
Not a bad rate especially when considering how short the life of the loan is. Shoot, you could consider leaving it a long-term rental for those five years to use that cashflow towards the property. Or at least keep the higher dollar unit occupied.
I'm looking at doing something similar on the west side of Puerto Rico in the coming years.
It is really cool to see someone doing it!
OP stated that the annual profit is $9800 after all expenses. Does that account for vacancies, capital expenditures, maintenance and property management?
Even with short term renting it for higher the OP is not local. Property management fees start at 10% and get as high as 20-30% for short term rentals.
Even if the OP invested $100k, financed the rest, AND had the same cashflow after debt service it's still:
$9800/$100,000 = 9.8% ROI
The S&P did 28% alone in 2019. How exactly is this a solid plan?
OP stated it is not strictly an investment. I'm aware of the S&P, hardly relevant.
OP's attachment accounts for property management and a handful of other misc. expenses and shows the $9800 after a few months of vacancy in one of the units. I do not see a bucket for future maintenance or CapEx.
I mentioned the option of keeping the higher dollar unit (see attachment) as a long-term rental which could cover monthly, and the bulk of the long-term (capex, maintenance, vacancy, etc...), expenses in the long run as he is going to pay it off in a short period.
OP has been traveling there for a decade and has an idea what is going on there to say the least I'd venture.
Live out your dream jagpill, I'm right behind ya!