All Forum Posts by: John Kai

Thanks Max. We are going to schedule a walk through with tenants on day that we receive back the keys.

My tenant just informed us that they were terminating a 2-yr lease with 10 months remaining on contract. We have a signed, executed lease agreement and did not mutually agree to terminate lease. The monthly lease was $3,500 and this translates into $35,000 in lost revenue. In the state of Hawaii, I have a duty to mitigate my losses by re-listing the property once I have possession on Dec 13th. If I am successful in finding a new tenant, I can then sue for damages, losses, expenses and including attorney fees. Any thoughts or issues that I should be aware of that I might not be thinking about? Your help and input is appreciated. Aloha and Happy Holidays! John

@Kim Knox the property and steps that you've taken has really done more for you in the long run by increasing the value immediately.  Imagine the value 5 years from now?  Even greater, I would assume.  That being said, the math makes this a simple one:

$3,000/ monthly income - $1,800/expenses = $1,200 net cash flow x 12 months = $14,400 divided by 2% bank CD rate = $720,000 what you'd need sitting in a 2-yr CD.

Use the excess net cash flow and build up another investment pool to find your next investment property to reach your goal of 10 free & clear rentals for retirement.

Awesome job by the way!

Aloha,

John

Originally posted by @Sorab G.:

Take it from a guy that owns many of these.  Make sure you or your agent specifically speaks with each person living there and validates what they are paying.  If the seller gets it its called an Estoppel certificate, but many of these have been known to be forged.  For me its happend at least 3 times.

A list of maintenance issues fixed and outstanding issues to be fixed.

Tax information might give you some information but i doubt its based on any fact.

Get examples of how much all things cost, water bill, garbage. 

Reach out to the city to see if any inspections or code violations have been given.

Run the numbers.. these types of properties have more costs than SFH's or duplexes.

Excellent advice Sorab!  I'm going to make a list of information to insist upon from the seller's agent whenever doing the due diligence on a property.  Thank you for this input. Aloha, John

Hi Tom,

My wife and I are from Hawaii and have just started to research multi-family investment opportunities in the Clarksville, TN and surrounding areas.  The more due-diligence I do about the area, the more I like.

Will plan an exploratory trip one day once I find a deal that we want to get serious about.

Best of luck to you and your wife/partner!

Aloha,

John

Tanner - thank you for your insightful input.  Scary to think that the mess that got us here is being repeated.  Crazy.  Nevertheless, that 0% down option does make things interesting.

Alberto, I agree with Frank's statement of "under promise and over deliver". You are essentially pitching your project and the merits of its potential, so be conservative with your projections and realistic with your costs. In addition, you are selling YOU. Be bold and confident (not arrogant) in yourself and that starts with being intimate about your project so you can pitch with passion. I don't believe your credit score or cash on hand is critical - although HML will want to see that you have some skin in the game - if you had a high credit score and a bank roll, you wouldn't need the services of a HML. Know your project, know your numbers, know yourself and be bold and confidant! Good luck. John

On the east side of the island the hot vacation rental markets are in the Kalapana, Kapoho region. You might want to check out AirBnB to get an idea on the daily rates on what's currently in the market as vacation rentals. Let me know how I can help. Clever idea and could work out great. Good luck!