All Forum Posts by: Bryan Vukelich

Hi @Sean Field-Eaton, that is a difficult decision but that is fortunate that you have equity in the property and can afford to feed it   As you know, 2.85% is a great interest rate and 13 years left to be mortgage free is really not that long.  How well maintained is your community?  Do you expect any special assessments or large increases in the association dues?  Also, although it is area specific, over the past 30 years, townhomes/condos on O'ahu on average appreciate about 4.68% annually.  I'm long term bullish Hawaii real estate and with current rate of inflation, you could do quite well if you held it long term - though I know feeding a property is not ideal. 

If you sold and wanted to stay invested in Hawaii real estate, have you considered a vacation rental?  

Ultimately - only you can decided what is best for yourself. But if you want to do more investment deals sooner than later and keeping this property will prevent you due to high DTI, it seems best to sell and reinvest in a cash flow positive property.

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

Hi @Marc Estepa - you may want to contact Kento Tanaka-Tamaki - he is successful real estate agent with the Villa Group on Maui and also a wealth manager.  Message me if you'd like his contact info or you can easily find it online.  

Hi @Beau Falla - per the Hawaii Residential Tenant Landlord code, landlord tenant laws will apply to any rental agreement 30 days or longer.  If you'd like a copy of the Landlord Tenant Handbook, please message me.  If you have any other questions, I'm happy to answer them.   

Hi @Andrea Smith - what kind of farm you selling?  Part of my childhood I grew up on a blueberry farm and loved it.  And if you are considering investing in a vacation rental on O'ahu, I'm happy to answer any questions you have.   

Hi @Valerie DeFreitas - that was a great overview of your deal.  Congrats to owning an investment property on O'ahu.  

Hi @Brett Mazzerle

I actually know quite a few condotels on O'ahu that cash flow - and can cash flow quite well if it is self managed.  One example is a client who bought a 2 BR unit at Waikiki Sunset for $715k last year.  Ali'i Beach Rentals (a very successful vacation rental management company) currently manages a similar unit in the building and the owner of Ali'i told me last week it does around $8k in slow months and around $12k in peak seasons.  And I know other who have bought with financing and are cash flow positive.  

And quite a few of my clients intentionally bought in Hawaii as they wanted an income producing property when they were not using it themselves.  From what they tell me, it seems to be working out well for all of them.

A couple key things to note though:  First, for an STVR, you'll need to put down at least 25%-30%.  It varies for each building.  Also, if return on cash is most important thing, you'll find better opportunities on the mainland.  And for property appreciation, last few years have been rather remarkable here, but for the past 30 years, on average, condos on O'ahu appreciate about 4.8% annually.

Hi @Elijah Wichers

Which island are you coming to?  And how long you plan to be on the island?  And have you been pre-approved and if so, do you mind sharing what price range you can afford?  

Here in Hawaii, condo monthly fees are called AOAO (Association of Apartment Owners) and the monthly fees can vary greatly in cost as well what they cover.  There are some 1 BR condos that have AOAO monthly fees around $500/mo that cover electricity, cable, water, sewer and common area maintenance.  While other buildings might have a $1k+ fee and only cover water, sewer and common area maintenance.  What monthly fees have you been seeing?  I'd be happy to talk with you and give you more info on the topic

And impossible to predict future values, but on O'ahu, over the past 38 years, average price for a condo has increased 4.72% annually.  And overall, inventory is quite low right now and this is helping to support valuations for most parts of the island even with the higher interest rates.  

And perhaps you can afforded a townhome or single family home? I recently had a VA buyer acquire a 3 bd/2 ba single family home in Pearl City. It was listed at $695k but he offered $725k and asked for a $29k credit toward closing costs and to pay down some personal debt. Seller accepted and now my client is housing hacking it.

If I can be of service to you, you are welcome to contact me any time. 

@Rick Figurasin - it depends on your risk tolerance and investment opportunities.  I own a primary residence now, but I rented different homes for years and used much of my funds for investments.   Hindsight though, I wished I would have bought primary residences for myself and participated in the appreciation.  

Are you open to house hacking to offset some of your expenses? I just had a VA buyer last week close on a 3 BD/2BA home in Pearl City that he paid $725k for but the seller credited him back $29k. He is renting out 2 bedrooms and there is also a large unfinished space on the first floor with direct outdoor access, that he plans to turn into another rental unit. He has been on O'ahu already for a couple years but is very happy he finally purchased a home.

Aloha @Rick Figurasin - it is great you are asking those questions but very difficult to provide answers as impossible to accurately predict what Fed, economy and home values with do. But I'm a big fan of the VA benefits and if it were me, I would use those benefits to buy a home in Hawaii with $0 down. And if you come across a good investment deal, deploy your cash then.

Last year I had a couple VA clients sell homes they've only owned for about 2 years and both made a decent amount of money on the resale. So if you plan to own and hold for 4 years, based on historical data, it seems like it could work out for you. Based on the past 37 years of data, median home price for single family homes on O'ahu increases a little over 5% per year. And although the market has slowed compared to the last couple years, inventory is very low and I'm still often seeing/hearing about multiple offer situations.

Again, impossible to predict, but personally I think home values will soften in the short term, but due to the high interest in owning real estate in Hawaii, and the lack of inventory and difficulty in building more homes, I'm bullish on Hawaii real estate long term.   

Good luck and if I can be of value to you in anyway, contact me at any time.  I am here to serve.  

Hi @Elin Trinh,

Below will be the expenses you'll need to factor into your analysis:

* Mortgage payment (if you are financing)

* Lease payment (as mentioned earlier - best to see if/when the lease will reset.  Please note it can be difficult get accurate info on what the new lease payment will be and I've seen some payments increase significantly once the lease resets)

* Monthly AOAO fees

* Insurance 

* Most likely property taxes

* Maintenance   

* Property management fees (unless you self manage)

Happy to answer any other questions you have.