2 Hawaii Homes $250k

[Christian Cramer]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Keaau.

Purchase price: $250,000
Cash invested: $10,000

Two 1 Bedroom homes (built 1998+2017) on a 1 Acre lot in Keeau, HI.
Received a 3% sales commission making my down payment only 2%. Seller gave me a $9000 credit for all closing costs. Ended up getting the deal for pretty much no cash out of my pocket.
Each home rents for $975 (1900), mortgage/tax/insurance is $1200.

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

Wanted to expand to the Hilo/Pahoa market.

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

MLS. Was just sitting for 30 days at $275k

How did you finance this deal?

5% Conventional (Didn't even know this was possible, pays to have a good lender)

How did you add value to the deal?

Privacy landscaping. I cleaned the water catchment tank. Not really much to be honest.

What was the outcome?

Getting good cashflow, I kept one of the tenants that were there.

Lessons learned? Challenges?

Puna is just as good as I thought it would be. Hopefully the volcano doesn't cover it, but I have volcano insurance anyways.