First Rental Property in Hawaii

[Chad Collins]

Investment Info:

Condo buy & hold investment in Mililani.

Purchase price: $199,000
Cash invested: $230,000

Condo
2 Bedrooms
1 bathroom
799 sqft
Updated applicances
Tiled floors
Remodeled Kitchen and bathroom

What made you interested in investing in this type of deal?

This is our first rental property. We remodeled it while living in it and paid it off in 2018 about the same time we started renting it out. We chose this property because it was something we could pay off quickly and it had lots of hidden potential. We bought it for $199,000 and its now with at least $300,000.

How did you find this deal and how did you negotiate it?

We were watching these specific condo's and waited for a good deal to become available.

How did you finance this deal?

5/5 ARM. Used equity from the sale of our previous home. Made a 45% down payment.

How did you add value to the deal?

We relocated the washer/dryer and the water heater out of the Kitchen and completely remodeled the kitchen--significantly increased the usable space in the kitchen.
We also built a tiled Turkish Bath and completely remodeled the bathroom.

What was the outcome?

Rent in these condos usually goes for about $1,400/mo. We rent out unit out for $1850/mo.

Lessons learned? Challenges?

Pouring concrete to build the Turkish Bath was really hard, but with the size of the bathroom, it was the best way to make the most of the space. It's not a luxurious bathroom compared to the surrounding condos.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No.