what to do in a tough cashflow market...

[Mark Baldwin]

Aloha BP,

I'm hoping for some strategy help...I own several vacant lots on the island of Kauai.  The cost of building and location of the lots, doesn't leave spec houses as a worthy option.  I can pocket the same money by selling the lots vacant, and save a ton of headache.  I am looking for a pure cashflow play.  I do not mind actively managing the portfolio, however my location presents a challenge.  Everything on Kauai is an appreciation play--and frankly, I don't want all my eggs in one basket.  I've considered investing in rental properties on the Big Island because of their relatively affordable housing, but I'm having a hard time getting my numbers to say anything above 6%.  I believe I would qualify as an accredited investor, so 6% on my money, being actively managed, doesn't seem very attractive to me.  I love having the potential for appreciation, but also want to maximize cashflow now.  I keep trying to convince myself to buy SFRs, but I'm starting to feel like I should just find a syndicator,  note fund of some sort, or maybe even a hard money lender, and let those that are qualified do their job...Or do I do a combination of all this?  I'd appreciate any thoughts you all had!

[Mark Baldwin]

I'm not allowed to do that on my lots, and if I were to purchase units to vacation rental, it would be a lot of work...for what seems like a minimal return.  Plus I could only pick up a few units.  I just feel like I'd be doing a lot of work, when I could achieve the same cashflow elsewhere...granted, I wouldn't have as much opportunity for appreciation.  As far as tiny homes...it's really hard to be the first at anything on this island, not that it couldn't/shouldn't work given our housing shortage, just not for me.  Appreciate the thought though!