All Forum Posts by: Bryan Vukelich

Hi Kirk,

You looking forward to the move?  If you want to share, what time of investment property you currently own?  

And I agree with @Kirk Mccallister - house hacking is definitely a possibility here.  I have a friend/client who owns a townhome in Aiea where he does that.  Also, you ever considered a legal vacation rental?  

Congrats Andrew - that looks like a wonderful deal you came across.  Best wishes to many more successful deals. 

Hi Ian, you might try:  

Matthew Arine, CPCU

Insurance Agent

Atlas Insurance Agency

Phone: (808) 533-8672

Good luck 

Hi Cody, congrats to savings up a chunk of cash and thank you for your service to our country. I agree with others that have posted that house hacking could be a good way to go about owning a property in Hawaii and take advantage of your VA benefits. Personally, and how I advise clients, is that for investing I've found the mainland is a better place to own investment property. But with your VA benefits, and if you will be living in Hawaii for work for at least a couple years, then owning a place in Hawaii might work well for you - especially if property values continue to appreciate as they have this past year (I'm skeptical).

But good luck with whatever you decide to do and if you have questions or want to talk Hawaii real estate, you are welcome to contact me at any time.  

Hi Christian, I have not done it but I've had clients consider making offers on probate properties.  Key thing to note is that even if probate court accepts your offer, you offer will then be advertised to the public, and any interested party has the opportunity to beat your offer.  I believe any new offer has to beat yours by at least 5% (I'm not sure if 5% is law or set by probate court) and then you have the option to either match the higher offer.  

And I agree with Frank - it is very competitive and so best to have several methods for lead generation.  I personally like driving for dollars or online lead generation.  

But I recommend you don't rule out finding a property that has been listed on the market.   I recently had a client buy this property:  91-621 Kilaha Street 39, Ewa Beach.  It was a multiple offer situation and he purchased it for $286k.  He is about done with the remodel and with how hot the market is, I think he'll do quite well on the resale.  

Any areas in particular you are looking to buy on O'ahu?  If you have any questions for me, I'm happy to answer them.  

Congrats Adam - looks like you have thought it out well and great that you can use your wife's income to pursue opportunities.  I've been a real estate investor for over 25 years and happy to answer any questions you have - though I still am learning things.  Wish you well on your way to financial independence.  

What part of Hawaii you from? 

Hi Adam - I recommend trying with smaller "owner managed" properties rather than with property managers.  You'll likely have better success dealing directly with an owner as most property managers will likely be risk averse to subletting - especially in this market.  

And for best areas to do it, I'd focus on areas that are most desirable for tourists and/or locals - these will likely be most lucrative for you.  If you find anything, you're welcome to share with me.  I know of 2 different individuals who are planning to visit O'ahu next couple months and are looking for places to rent.    

Good luck 

Hi Prashanth, I agree with Lake's answer but wanted to contribute some about STR's - my answer deals mainly with Oahu as each county in Hawaii differs somewhat on how they handle STR's.

For O'ahu, vast majority of legal STR's are in the hotel district of Waikiki. These are legal due to the zoning. There are properties outside of Waikiki that can be legally used at STR's and these properties have non-conforming use permits (NUC's). Last I checked there were about 800 NUCs on O'ahu. NUC's are transferable and have to be renewed county every 2 years. If they are not renewed, they expire and it is impossible to reactivate.

For Waikiki condo STR's, it is possible for them to cash flow but the returns usually aren't very good. It usually makes the most sense for an owner who wants to offset some of their costs while owning real estate in Hawaii.

Also, there is a somewhat "workaround" to the STR regulations, and that is doing 30 day rentals which can be quite lucrative. I have client who recently bought an oceanfront home on the Windward side of O'ahu for $916K. They will starting doing rentals next month and the property manager expects them to gross $7-9K a month. This property manager also manages a home in Kailua area - walking distance to the beach and 30 day rate is $12k. Lease rates have skyrocketed this year as there is very strong demand - obviously no guarantee if rates will stay high but some people are making money right now.

If you have any other questions, I'm happy to answer them. 

Hi Mariani, what type of properties are you looking for and what is your goal with them?  As others have said, Hawaii is not the best market for finding cashflow investing  - especially in this market.  But there are some opportunities in the short term vacation area, but overall, better opportunities can be found on the mainland. 

If you have any other questions, I'm happy to answer them.

Hi Clifton,I am realtor as well as an investor on O'ahu.  Are you under contract?  If so, I realize my post is late to the game and wish you the best, but wanted to share a few things and maybe reassure you or give you more clarity of situation in Hawaii and submitting an offer in this market.  

First, yes, market is crazy here as you are aware.  Here is an excerpt from my last newsletter I send last week addressing this crazy market. 

"How do you define insanity? Some say it is doing the same thing over and over and expecting different results. Many would-be buyers are certainly feeling a bit insane as they continue to vie for property in today’s market. In fact, there is a term called “inventory insanity” that is being tossed out quite a bit these days.

Simply put, it is an extreme, unprecedented shortage in the market that is causing otherwise logical buyers and their agents to go a little bit crazy. In some cases, a lot crazy. As a buyer, you want to be competitive. By all means, sharpen your pencil to craft a strong, competitive offer. But, waiving all your rights to secure a property is quite another. In some cases, that is what we are seeing. Buyers are waiving home inspections, termite inspections, surveys, and giving up reasonable asks like cleaning and pet treatment to be competitive. To secure a property. Each situation is unique. Every buyer must decide what to do. And, on the advice of their agent. The point is that the shortage of housing is creating insanity in the market."

With that I'm guessing your realtor might have suggested you waive certain contingencies, or you offer to pay for them yourself.  It really comes down to what you are comfortable with, but if your agent is quality, he/she would have explained each item in detail and answered all your questions so you could determine how to proceed.  

And I'm glad you ignored @Lane Kawaoka post and did what is best for yourself.  And there are real estate agents who put their clients interests ahead of their own and are financially independent.