Finally an introduction

[Mark Baldwin]

Hello everybody!  I'm Mark Baldwin, and have actually been a long time user of the Bigger Pockets message boards, but have never actually made an introduction or post myself.  I've finally realized I can't go it alone, and none of my old excuses seem to make sense anymore.  I guess I'd presently be considered a part time investor.  I was/am involved in the development of a roughly 5 acre parcel on Kauai.  We have to date built our own primary home, and 3 additional rentals, with the possiblity of building 3 more.  It has been a long and arduous path...but we somehow made it to the other side.  However, while I've learned a lot, and definitely improved my finances on paper...It has done very little to my wallet.  Kauai is an expensive place to build and develop, especially when doing it on a small scale as we have.  I've tried to purchase a few flips, but the market is particulary challenging due to the extreme lack of inventory.  Anything at a fixer price point garners a great deal of attention and interest.  While I haven't given up, I am tired of waiting for things to work out where I live.  I'd like to begin figuring how to monetize the equity I have in my property, without selling.  I am considering some version of turnkey, but don't have a great deal of cash to leave in a property.  I am happy to have finally made my first post...took me way too long, and am looking forward to what comes next!

[Karen Margrave]

Congratulations on posting your first post! It sounds to me like you have some great deals already in progress. Are you using your rentals as Vacation Rentals? If so, we have a forum on BP dedicated to short term rentals where you can hook up with other members with similar properties. Many times in high dollar areas such as yours, vacation rentals are the niche that helps owners realize cash flow. 

We were in the market in coastal Orange County for a few years, building spec new construction. Unfortunately, the problems you outline were the same there. High demand, little supply of available property for us to build on, and a permitting process that was to time consuming.  We've now relocated to Bend / Sunriver Oregon area, where permitting is much easier. 

I just wanted to say hi, and wish you luck. Also, I'd like to suggest as you do your new builds, you may want to document it on the forum for New Construction. 

[Corby Goade]

Welcome and good luck!

[James Wise]

Welcome to the site @Mark Baldwin

[Greg Horn]

From a fellow Kauai'an, E Komo Mai!

[Mark Baldwin]

Thanks for the welcome everyone!

The County of Kauai makes things tough here. There is a very limited geographic region that allows vacation rentals. This drives costs up. This and the insane HOA fees make vacation rentals tough. We actually sold one hat had been in the family for a long time due to the pathetic returns we were getting. My homes are not able to be vacation rentals due to this geographic limitation. On the flip side, if everyone could vacation rental their home, there would be nowhere for local people to live.

And full disclosure, I didn't purchase the land that we just built on. It had been in my family for a long time. To purchase and develop that kind of parcel here requires a great deal more knowledge and money than I have!

[Account Closed]

Aloha @Mark Baldwin Congrats and glad you are here in BP! Great place to learn.  An excellent way to continue succeeding in real estate is buying and selling undeveloped land. Incredible returns, no rehab needed, and you can buy/sell all over the country (since you are on paradise island!).  Great way to learn how to create and close deals - and any budget can work!  Holler if I can help.

[Mike V.]

Welcome! 

Im surprised you said you’re getting pathetic returns over there in Kauai. Kauai is my sweet spot and I get a minimum of 20% coc roi with my short term vacation rentals. I’m in escrow as we speak for another one. 

Would be happy to discuss with you if you’re interested. 

[Mark Baldwin]

@ Mike Verna---what part of the island are you buying on? We were getting eaten alive by the $1200 month HOA fee, and the 25% management fee (before expenses). Perhaps if we had self managed, but it was complicated since it was jointly owned, so somebody would have had to be paid to manage. My wife and I are willing to self manage(buy ourselves a job), but the numbers still don't make sense on the south shore, and self managing any other side gets difficult.

[Tom Ott]

Originally posted by @Mark Baldwin:

Hello everybody!  I'm Mark Baldwin, and have actually been a long time user of the Bigger Pockets message boards, but have never actually made an introduction or post myself.  I've finally realized I can't go it alone, and none of my old excuses seem to make sense anymore.  I guess I'd presently be considered a part time investor.  I was/am involved in the development of a roughly 5 acre parcel on Kauai.  We have to date built our own primary home, and 3 additional rentals, with the possiblity of building 3 more.  It has been a long and arduous path...but we somehow made it to the other side.  However, while I've learned a lot, and definitely improved my finances on paper...It has done very little to my wallet.  Kauai is an expensive place to build and develop, especially when doing it on a small scale as we have.  I've tried to purchase a few flips, but the market is particulary challenging due to the extreme lack of inventory.  Anything at a fixer price point garners a great deal of attention and interest.  While I haven't given up, I am tired of waiting for things to work out where I live.  I'd like to begin figuring how to monetize the equity I have in my property, without selling.  I am considering some version of turnkey, but don't have a great deal of cash to leave in a property.  I am happy to have finally made my first post...took me way too long, and am looking forward to what comes next!

 Hello and welcome! Best of luck to you!

[Larry Fried]

Aloha @Mark Baldwin and welcome out of the BP shadows!