Cash flow on Oahu?! In escrow on my first property!

[Sarah Lam]

Hi everybody, I just bought my first property in Aiea, HI (on the outskirts of Honolulu) and am set to close the first week of October! 

I've been on BP for a looong time, but my real estate investing dreams were put on hold by 1) lack of funds as a new grad and 2) a now ex-boyfriend who wasn't very interested in real estate investing. But I'm back and so pumped about it!

It's a 1BR/1BA condo in Aiea; super close to a military base, which means higher rents. I lucked out, as the sellers are an older Filipino couple who preferred working with me over a cash buyer. When I walked the property with my inspector, the wife gave me a couple packages of frozen homemade lumpia to take home! 

Asking price was $218K, I put an offer in for $208K and they countered at $215K, which I accepted. However, due to some complications with the financing appraisal, the sellers agreed to give me a $3K credit, effectively making the purchase price $212K.

212K purchase price 

PITI: $873

Maintenance fees: $395 (includes property management! And nearly all utilities)

Total monthly payments: $1268

This unit should rent out for $1550 as is, but I'd like to make some upgrades to hopefully boost the income potential. 

I know a lot of people on BP do not like investing in condo's, as they are subject to condo fees that can increase at any time, which cuts into profitability. But as an out-of-state owner, I don't want the upkeep that comes with Hawaii houses. Plus, the fee just increased a couple of months ago, and there are no plans for any increases in the future. It just shows that if you're patient enough, it's still possible to find cash flow in an appreciation market! :)