All Forum Posts by: Brian Tremaine

If I need a fence repaired/replaced at a rental, a 50ft section will cost about $2500 today (!!). I will hire an experienced handyman who I know has done this before. If I need electrical work done or plumbing I hire a licensed contractor. I keep a paper trail for tax purposes but I don't issue 1099's. For cleaning people it's the same, not a formal business entity, but will pay by check and keep a paper trail.

I'm looking for advice on how to handle a tenant who is late on rent. The covid-19 protections did not go into effect until March 17 and she is late on March 1st payment. So I should be able to evict. I've already served 3-day notice on March 14th and she hasn't responded after 5 days. She has been consistently late for months, this time I think she is too far behind.

If I proceed with eviction is it still valid with the covidid-19 rules? I'm worried that while covid-19 is an issue I will not be able to rent a vacant property. My long term plan is to have the place vacant in 2021, renovate and sell in 2021. I don't want to do this in 2020 because I already sold 1 property this year and the tax hit would be too high to have 2 in one year.

Appreciate any advice

Hi John,

You are correct, I think I can find a better deal and the price I was stating was list. Currently homes are going ~6% below list.

As far as managing our properties we have several handymen, and other services we use frequently for our vacation rental that a PM handles. We use those same services for the SFR. These are long-term rentals (i.e. UofH grad students in residence) so there is not much managing to do. We also vacation there 1 month a year when we check in on all properties.

@Joe,

I think your probably right. I like the Hilo area and it's hard not to be swayed by properties that are so much less than San Jose :). I have seen other opportunities  there that can provide $150/mo with <$40k cash in. My objective is long-term buy & hold.

Devan, Thanks for your unbiased input. I would plan on a 30 year note and probably sell in 10-15 years. You are correct I should consider the worst case scenario. They always happen at the most inconvenient times.

Kevin, I already own two homes and a vacation rental in the Hilo area and like it very much. My wife & I stay there 1 month a year and plan to be there at least 4mo/year when I retire in ~5years at 70. The other islands, and even Kona on the Big Island, are too touristy for us. You are right, this has kept the appreciation modest but I also have a feeling a lot of main-landers are going to get tired of $1MM entry level homes and $3500/mo rents.

Hi All,

I'm questioning my approach after several decades, old dogs they say ....

I want to evaluate the purchase of a SFR. I normally account for my overall cash flow as rent minus expenses, where expenses are mortgage payment (prin & interest), insurance, taxes plus a reserve for miscellaneous.

In looking at a property near Hillo ($250k 3/2) with 20% down. This leads to a property I can rent for maybe $1200 but my cash-flow is negative at -$152. However, if I account for the fact I'm paying down principal  $263/mo my net is really a positive $111.

I already have a couple rentals near Hillo and I manage them myself from CA with tenants that are long-term stable.

Which way is the correct way to analyze this? Principal or not?

P.S. HI requires resident RE Brokers to manage short-term vacation rentals owned out-of-state but long-term non-vacation rentals don't fall under this rule.

Thanks for your advice

There are a lot of pockets around SJS. 10th and Julian is north. I don't think this is the core area for student housing but is more a low income family area. From South 13th to South 17th there is a pocket of family homes (Naglee Park) with Williams St park being the peak of the area. Farther South than ~18th the area degrades very quickly. The area between SJS and South 13th is mostly lower cost homes & MF for student rentals. It really depends on the immediate area and the curb appeal & condition of the property.

I graduated SJS in '71 and lived in the area. Our first home on 14th got me started in REI. We moved there from a Victorian rental on South 13th. My wife and I still go back to the area about once a month for Sunday walks and lunch at "The Garage". When we lived there it WAS a garage ;)

I think the entire area will always be a good investment. There is a lot of opportunity for adding value to older homes. The City is putting a lot of money into improving the downtown core area with light rail and encouraging retail investment. I'm told the nightlife is pretty good.

 "toxic tenant", I love that phrase. I remember to use it in the future,

I agree with Jane,

If you think you have problems now wait until she has lived there a month. I would get rid of her as quickly as possible, refund back the $500 and get your keys. Any alternative will cost you more in the long run (lawyer fee's, lost rent, tenant from hell). Cut your losses and be thankful.

For my properties rent is due on the 1st and late after the 5th. If we don't have it on the 5th we contact them and there is a late fee. On the few cases we have had an eviction there was no response when we attempted to contact on the 5th. Next step is 3-day notice to start the eviction process.

In 2nd place you can lose your total investment. Happened to me in 2008. I thought 80% LTV was sufficient but prices dropped 40%, ouch! Lesson learned the hard way. Even the person in 1st position lost $.