All Forum Posts by: Bryan Vukelich

@James Tarantino  - you're off to a good start asking these questions, and looks like you are getting some good advice from some other members.  I'll add a few things I think may be helpful.

* First, I"m not familiar with NJ market but obviously there are advantages of owning in the market you live in.  

*  I recommend you first investigate different markets around the U.S and then pick 3-5 markets that intrigue you most.  At that time, really refine your search to try and determine what market will likely give you the best opportunity to achieve your real estate goals.  When researching markets, research landlord tenant laws, what is the political/regulation environment?  Is the area business friendly?  Is crime increasing or decreasing?  More people moving to the area than moving out, etc. . . 

* Congrats on having $400k budget.  In some markets you'll be able to invest in a MF. 

* Also, I have clients who self manage an STR from out of state. I referred them to a cleaner and maintenance person and it is going well for them. I also know other investors who self manage STRS in their own state. Since you work full time, self managing a STR may not be viable, but it is definitely doable.

* Lastly, I applaud you for wanting to get started in real estate investing.  However, please note, you can now get about 5% yield in a money market.  That 5% return - stress free - not having to deal with tenants, maintenance issues, property management companies.  Might be a good place to park your money until you find a quality real estate investment. 

Wish you well 
  

Hi @Zach Edelman - for growth, meaning increased income?  For long term, yes; I do based on O'ahu being such a popular tourist destination from people around the world, also the limited inventory, lack of vacant and buildable land and the extremely time consuming and costly process to try and build anything new here.  But with certain U.S. and global economic issues right now, I wouldn't be surprised to see the market soften a bit in the short term.  However, I've been surprised by the number of tourist visiting O'ahu so far this year, and other people in the industry have said the same - been very crowded and we are not even in peak season yet.  

How's the overall market in Austin currently? 

Regarding legal vacation rentals in Hawaii, each island has its own regulations so be sure you clearly understand the risks of each inland.  For O'ahu, Bill 41 was passed last year which seems to have give clarity on the regulations - at least for the time being.  To add, I've not heard of the government wanting to add any new regulations for the resort districts on O'ahu where it is legal to do short term rentals.

Also, please note, the resale market is still very strong on O'ahu - partially driven by lack of inventory.  A unit at Waikiki Banyan - a very popular building for investors and guests, just sold for a record price.  And this morning I presented an offer on a unit in another building that, if it is accepted, will set a record price.  And despite the large number of hotels in Waikiki, the occupancy rate is high for vacation rentals.  I spoke to a vacation rental manager today and he commented how strong demand has been for vacation rentals - and this is not our busy season.  To me, it is pretty remarkable how many tourists are currently on the island.  Last few days I've worked in Waikiki - packed.  And the owner of a large vacation rental management company recently told me that more and more people seem to have a preference for staying at a private vacation rental, rather than a hotel. 

Wish you all well in your investing and happy to answer any questions on O'ahu real estate.  

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.