All Forum Posts by: Colby Hanley

For the electric when you wire the ADU you can put in a sub electric meter. You still only have one meter but you can have an accurate reading of who is using the electricity. I use this on a few of my properties, at the end of the month I look at the meter reading and let the tenant in the ADU know what their share of the electric bill is.

Here is a link to a sub meter, I would talk to your electrician and go with what he recommends.

 https://www.gordonelectricsupp... 

This is a good link, and it covers all states for reference.

Wartime veterans, their wives or widows may be eligible for a property tax credit of $51 ($100 if both are eligible veterans). Cities/towns may vote to adopt a higher tax credit of up to $750.

The widow of a veteran who was killed in action may be eligible for a tax credit of between $700 and $2,000 on real estate or personal property.

There is a $701 tax credit on the home of a permanently and totally disabled service-connected veteran, double amputee or paraplegic or unremarried surviving spouse. Cities and towns may vote to adopt a higher tax credit of up to $2,000.

A permanently and totally disabled veteran who is blind, paraplegic or a double amputee as a result of service and who owns a specially adapted home acquired with the assistance of the VA, or with proceeds from the sale of any previous homestead acquired with the assistance of the VA, is exempt from all property tax on the home. The veteran's surviving spouse is also exempt.

https://www.military.com/benef...

Was going to reply, but Devin nailed it, even recommended a great person for the pumping Brandon W/Kekai's Pumping.

I saw this on youtube a few months ago, though it was interesting.  

Aloha Maxwell,

Hawaii Taxes you Might Owe:
Hawaii state income tax returns are due each year you rent property on Hawaii. This is true whether or not your rental creates taxable income or not. There can be significant differences between federal and Hawaii depreciation allowances and it is possible that you owe Hawaii state income tax on the rental even if you did not show a profit on your federal return.

Hawaii General Excise Tax (GET) of 4.00-4.50% is due on all long term rental of over 30 days. GET and Transient Accommodation Tax (TAT) of 10.25-10.50% is due on all short term rentals of under 30 days.  The HARPTA withholding is collected to ensure non-Hawaii resident sellers of real estate pay any state taxes connected to the transaction.

You are subject to Hawaii capital gains tax of up to 7.25% on the profit (gain) realized on the transaction.
Once you are current on all of the taxes above, you are eligible to file for an early refund of the withheld tax based on an estimate of the tax you may owe. If your estimate is zero, you may be able to recover the entire amount prior to filing your next HI state income tax returns. NOTE: Any unfiled GET/TAT/Income tax returns must be filed prior to receiving a HARPTA refund.

Here is a calculator that might help, it is from a local Title company that I like to use. http://express.tghawaii.com/es...

I have State Farm and have been very happy with their service.  The only thing is if the property is within 500Ft of the ocean they will not cover it.  I had a property a few years ago and learned this at that time.

Sorry but I had to LOL

I love it, the smell of money.  What is the source of the water damage?  A few of the pictures make me think it was flooding rather than a leaking pipe or roof.  

I did one last year here on Maui that had a roof leak in multiple spots over multiple years, most of the 1st-floor ceilings removed themself do to the water damage.  The good thing is when it is that bad it makes the decision easy on how to repair it, remove it all, and hang all new drywall.  It also makes the plumbing and electrical easy as it is all exposed.  Thanks for showing, I look forward to the finished results. 

One other thing to think of if you are financing it is, that the appraiser will only value the permitted part of the property, the unpermitted/non-conforming part will not count towards the value of the property.  I have seen homes come in on Maui 2/3rd of what people thought they were worth due to this.  If this happens the buyer needs to come up with the difference or the deal falls thru even though the rental income would cover the cost.  

Terrell, 

Sound like you may have potential in this deal. Why do you not look at using a VA loan, if you are a disabled vet they will waive the funding fee. I see that a disabled veteran in Maryland may receive a property tax exemption on his/her primary residence if the veteran is 100 percent disabled as a result of service. The exemption amount is determined by the Maryland Department of Veterans Affairs. Good luck with this deal, keep us update on how it goes.