All Forum Posts by: Bj Carvalho

Roger,

Depending on what you buy, and like you said, where you buy...$3k/mo rent is absolutely attainable.  Currently, we rent our 3/3/2 house (but it's 2000 sq.ft.) in Pearl City for $2900 + utilities (we lowered to keep tenants, they've been there going on 2 years now).  The military folks make crazy money on BAH for Hawaii...so its possible.  My house is appraised in the mid $700s too...and not really anything special so ~$500k budget may not get you there, but hey...even blind squirrels find nuts right?...there isn't anything saying you can't wait for prices to drop and rent first to get a feel of the market (if you're going to live here).

Some folks also enter the market to take a small hit monthly (rent vs. mortgage) in order to take advantage of the decent appreciation rates Hawaii has to offer...but that's a long game strategy and not everyone has that capability.

Section 8/HUD vouchers will vary, but are rather hefty for Hawaii too, should you choose that route as well. Hit up Craigslist and see what's renting and in what locations to get feel of market prices.

Good luck on your hunt!

BJ

@Andrew Callahan...i think you need to define "cheap house"...this is Hawaii after and it's a seller's market here.  My home in Pearl City is appraised in the mid $700s...2000sqft, 3/3/2 with studio extension...so I realize that my house is not the normal single family home...but I did buy in early 2000s so my entry price was low like yours.  We contemplated selling to take advantage of market too...but the equity we have in it helped to buy our second house/property on Maui...we cash flow on renting it out and use that money for both mortgages.  If we need to sell...it's not a problem so we are keeping unless something happens...then sell should we financially get into any troubles.  I would suggest holding on and trying to rent like suggested above for a little while...this way if Hawaii doesn't work out...you have somewhere to fall back on.  Let's face it...Hawaii isn't for everyone for whatever reason...hell...if it weren't for my family being here (Maui)...I'd be outta here myself :-).

I'm a firm believer in using your equity, after all you've invested in into it.  I'm not as experienced in real estate investments as a LOT of folks here...but we've made safe/wise choices (so far)...and have been doing ok...we're building an "Ohana" on our property for another rental as well...with another one planned for down the road.  It gets addicting!!

Good luck with your adventures.

BJ

Let's not forget some of the the things not mentioned...the pay scales here are "generally" lower than mainland pay scales of more "comparable" cities...we get taxed on EVERYTHING...and because we're separated by a lot of water from the mainland...things tend to be a little more expensive since it all has to be shipped here. There are many folks that come and go...for one reason or another...many leave (locals included) because they want to "live" and not just survive, which many folks soon realize when they move here. This is where the price of paradise comes into play...some pay some don't. I'm third generation born and raised on both sides of my family...we contemplate moving to the mainland ALL the time...but have made it work and our innate sense of family keeps us here just a little longer. It's not for everyone...but due diligence will go a LONG way for anyone wanting to "try it out". BJ

Loren Clive , I'm a born and raise Makawao boy...would be great to meet up and "talk story". I have a friend that's also in Makawao, and on BP, looking to do the same. We're trying to set up a time to meet and will let you know...if you have the time to share...that would be greatly appreciated. The entry price is spooky factor for sure...but I think it also gives an edge to the folks ready with cash too. I'll message you to see if you can meet. If you can't, no worries...there's always next time. Take care. BJ

Thanks for the invite @Mana Silva...I will for sure...we'd like to try and stay local for now...well for as long as our money holds out...lol

But were thinking of investing at some point CONUS.

BJ

until you take that first step though...you won't go anywhere...lol

i thought buying my first house was spooky...then i bought a parcel...and built a house...THAT was spooky...and now this...i see it as baby steps, that could bankrupt me :-)

good luck to you Vick!

BJ

Mark,

I'm a research nut!  no worries on that front.  I think it's the "leap" that seems to be the hardest nowadays.

Thanks.

BJ

i'm a newbie and did what you are doing...i turned my primary residence into a rental and bought another property to live in...the discussion of asset protection came into play...i talked to an asset protection lawyer and he immediately suggests an LLC ($$$). what people don't realize that if not setup and managed properly, hence using a lawyer (again...$$$), will be almost useless in a law suit. LLCs with a trust gets more complicated and expensive at the same time.

talked to another lawyer, and she told me to merely get a ~$2m umbrella policy...~$20-$30 /mo.  cheaper/easier and will cover most if not all damages IF you get sued.  not sure if this will work for you or not...but a suggestion as well.

BJ

Aloha all.

My name is BJ and I'm completely new to the world of real estate.  My wife have been very lucky in our 2 real estate purchases.  We bought our first home in 2002 (in Honolulu) and have since turned it into a rental turning positive cash flow for us.  We then bought our 3 acres and built a small-ish house on it for us in 2009 (on Maui)...that we currently live in.

All that being said, we'd like to pursue rental properties in order to have my wife work from home...or not work at all.  We want residual income for retirement as well as help to start build something for our kids so that they have head start in life and will hopefully be able to stay in Hawaii should they choose to.  Many locals are being "priced out of paradise".

Our area of the market seems to be a little different that the rest of the states that I read about...so I'm trying to learn what I can see how that may fit into the Hawaii market.

Thank you to all and especially BP for having a vehicle for us to use to help us make better decisions.

My apologies...I fat fingered "Newbie" on my heading and can't change it :-).

BJ