Newbie from Hawaii

[Kahanu Noa]

Aloha everyone,

My name is Kahanu and have been fortunate to be born and raised in Hawaii.  I recently stumbled upon BiggerPockets as I searched for ways to invest in an investment property.  Being a recent first-time home buyer, I plan to acquire a second property which produces positive cash flow by the end next year and look forward to learning from other people's RE experiences.  I am in the process of following the steps from the Ultimate Beginner's Guide.

Mahalo nui (Big Thanks)

[Austin Davis]

Welcome @Kahanu Noa !

I am newer to the community myself, but have been very happy with all the kind support I have received through BP so far.  I think the Ultimate Beginners guide is a great place to start.  I also recommend BP's podcasts and the other books that BP puts out like Real Estate Rewind [A BiggerPockets Community Book] and BiggerPockets Presents: Diary of a New Construction Project Ebook.  I haven't purchased J Scotts books yet, but I am sure they are amazing as well.  Check out the blogs and start asking questions.  It only gets easier the more you do it.

Good luck!

[Paul Timmins]

@Kahanu Noa

Welcome. Time to build the foundation below.

Check out the Start Here page http://www.biggerpockets.com/starthere

Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 70 past ones to catch up on.

Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need.

Consider checking out HUD homes for small multi's owner occupied gets first crack.

You might consider Niche or Specialized Housing like student housing or vacation rentals. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

Good luck

Paul

[Joe Sillaman]

Aloha! 

Have you thought about out of state buy and hold investment? Price points being the way they are here on Oahu are high but I'm not too familiar with the Big Island. Have you considered maybe vacation rentals? 

I definitely plan on moving to the BI down the road! 

Best of luck to you! 

-joe

[Dmitriy Fomichenko]

Welcome to BP community @Kahanu Noa  It is a great place to meet new friends and learn about various aspects of real estate and more. Here are a few recommendations for you:

Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet

Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts

Wishing you the best! 

[Kahanu Noa]

Aloha @Joe Sillaman 

Just posted a forum on investing out of state as I am looking for small multi family units that cash flow well.  Getting a ton of feedback about investing in vacation rentals here on the big island but I think that will be down the road.  Just looking to get started and learning a lot.  What's been your investment strategy here Hawaii?  

[Kahanu Noa]

@Dmitriy Fomichenko thanks for the heads up and best of luck as well!

[Joe Sillaman]

@Kahanu Noa

I bought a vacation rental on Oahu's North Shore in 2012. It's been a great positive cash flow property for me but it helps that I avoid paying PM cost by operating it myself. It nets me anywhere from $700-$1K/mo (after 14% GE & TAT taxes). 

I also just purchased a a long-term buy and hold in Montgomery AL as price points are way lower in the Southern US. It nets me almost $600/mo but it's an older house so maintenance from here to there costs me a little more when things break. 

So basically I like to buy-fix-hold. If I could buy nothing but vacation rentals I would but the price point is super high in HI. Long-term out of state rentals work well too, I have a PM for my out of state rental which I hardly ever get involved with. The hassle is the initial start up and team formation but after that it's not bad at all. 

If I could flip I would as well but you need a ton of cash ($500K+ at least for Oahu) or must have a ready, willing, and able partner with cash. You'll also need to seriously dig hard to find off market deals and in an environment where there's like 8K REALTORs in Hawaii it'll be hard to convince someone to sell straight to you.

Next time you come to Oahu let me know? Lets catch some lunch!

[Devan M.]

Welcome to BP @Kahanu Noa it sounds like you've got a good start with the Ultimate Beginners Guide.  BP is a great place to network and learn.  Be sure to check out the podcasts as well.  Best of luck!

[Kahanu Noa]

@Joe Sillaman those are some great numbers.  What led you to the market in Montgomery, AL?  Have you ever considered Buy and Hold turn key properties out of state?  

I see your point on flipping and also vacation rentals, I think the Big Island provides some opportunities to work directly with sellers. I saw a few distressed properties with great ARV but because I don't have time to oversee construction of a project (day job) and don't want to over leverage on the first deal decided to stick with the long term investment plan.

@Devan M. thanks, the best to you as well!

[Brandon Turner]

Hey @Kahanu Noa welcome to the site! It's great to have you here. Feel free to ask any questions in the forums. Seeya around!

[Kahanu Noa]

Hey @Brandon Turner, thanks so much!  Keep up the great work you are doing and thanks for all help!