All Forum Posts by: Bj Carvalho

So you have 3 possible units for $8600/mo...now that works out to about $2850-ish /mo for rent...? Will that include utils? I live on Maui...and have seen the prices...which can be quite substantial for rent...but wondering what the occupancy rate will be at those prices...?

Couple guesses... 1. They sold..? 2. The market is probably not going to do too well with the volcano eruptions...no...not for the lava threat...but the volcanic ash-smoke and earth quakes (which can cause damage too). My guesses with regard to the market on the Big Island.

We have used the 1st position HELOCs on both homes we currently own (just sold one). We rented one home and used the rent as payment to the HELOC (they only usually require interest payments), as well as directed our incomes to it as well. The second home HELOC was receiving interest only payments at that time.

this enabled us to pay off the first home...which was a buy/hold home that appreciated quickly in the Hawaii market.  We just sold that home, but missed the capital gains time line by 1 month (another story), but will still able to take that money/profit and pay off my current home..bought/built in 2012 :-).

we were lucky with market timing, but this HELOC method did give us flexibility and "increased our equity" since we paid down principal quickly while the market rose quickly.

MANY folks get into trouble with this method if not disciplined though.

Good luck with which ever way you choose.

This can be a touchy subject here in Hawaii...most folks rely on the hotel industry for employment...VRs can/do take away revenue from hotels.  VRs can also increase long term rent as "affordable housing" properties decrease.  Property values can rise due to certain homes/locations being more attractive to buyers for VR purposes.  Transient traffic can make for an unsafe neighborhood for neighbors as they no longer recognize "regulars" to the neighborhood...traffic...blah blah blah...

the good side?  income, revenue to the state/county, these properties are less likely to be eye sores and can/will help drive up property values for neighbors (catch 22 here)...etc.

i live in rural area on Maui and have seen my share of legal and illegal VRs pop up...i don't really have a dog in this fight either way, but would probably like to dabble in this market as well should the rules/laws change...right now the process here on Maui is just too cumbersome (probably that way to make it unattractive) to become a legal VR property.

I do wish you luck and ask that you post back with your findings/results for the other Hawaii folks!

BJ

You will also have to worry about neighbors complaining, other folks losing business on their illegal BNB complaining, associations...etc... The counties make it difficult for BNBs since it takes away from the hotels and their profits/overhead/etc. Good luck. BJ

I use the "1st lien HELOC" method on 2 of my properties in Hawaii. One has been just paid off 😁 and being rented for $2850/mo. Using all of that to pay down my current house on Maui. Using the rest of the equity to build another dwelling on my property for a rental. We're in it for the long haul. Points mentioned above using this method are spot on. Not having to pay amortized interest means having more going to principal now which also helps pay down balances quicker as well. It's not for everyone and takes more in depth money management skills not to mention discipline. I have referred MANY folks to Santos Kidd. Nothing wrong with hearing about it. BJ

I just don't know what requirements come along with "just deed it over" though...in the end...I may have to consult a lawyer (?). BJ

Chris Soignier , good idea...but I'm not sure the inlaws will qualify for much being on fixed incomes (Social Security), and I don't want to co-sign unless I have complete control over the money as we're pretty stretched on loans right now...as for the market value observation...I hear ya, but won't work for us since there is another personal issue that hampers that solution. I realize that there are many creative ways to go about it, but I'd like to really hear more on quitclaim legalities before I try another strategy first as it sounds like a clean/quick way to acquire the property...at least at face value anyhow. BJ

@Michael Borger this is an interesting idea, but am afraid that my in-laws won't want to deal with something "non-conventional".  I do have a friend going over to assess the property (he's an investor/broker as well) and will give me some numbers to consider and work from.  I was hoping that the quitclaim deed process would allow us get the property cheaply then flip.  We'd have our money to build, make a little money, and give some back to the in-laws at the same time.

Thanks for the information!

BJ

Hey folks,

I'm exactly sure where to post this question...so I suppose it will get posted here for now :-).

My in-laws are both retire and on fixed incomes.  They have paid off their condo... but pay hefty utilities/maintenance fees.  They live on different island than my wife and I (Maui vs. Oahu - HI) and want to move to Maui.  We are looking to build them an extension off of our current house, but want to somehow leverage their condo to help defray the costs.  Could a quitclaim deed be done for something like this?

The condo was build in the 70s and has not seen ANY upgrades since...which makes selling for any real money (market value or at least close to it) an issue as they have no money to put into it just to sell.  There are a few more complications, but this is the gist of the main issue.

We can't afford to buy it off of them, repair, then rent while build them the extension to live in (for free) all at the same time while paying our mortgage.  Just looking for any experience in anything like this or cost effective solutions...?

Thanks.

BJ