All Forum Posts by: Daniel Kong

Hello! I'm looking to buy a ticket to BPCON! Please reach out if you have one! 

Thank you!

-Daniel

All things being equal owning is better. But here is a case for renting:

1) You dont have the capital, dti, etc, to buy, or buy any more.

2) You want to scale your monthly cashflow very quickly. 

In both of those situations, I think arbitrage is the way to go. 

@Petra M. Hmm are you sure you are listing your property address or is it just your home address? Maybe I set mine up wrong. My CPA told me to just use one GET/TAT account/ID for all my properties. I dont think I entered multiple addresses. But its true that there are no real repurcussions for not reporting your TAT income other than interest on money owed. 

@Andrew Meikle Why do you need 80k for a down payment? If you are going to live in the house why not do a 5% down and have a larger cash reserve for investing or savings/rainy day fund? 

Ive run a AirBnB as residential property, and the state had no problem taking my GET/TAT taxes lol. Your GET/TAT tax ids aren't really tied to a property - more to you as an individual. 

As far as risk, about a year and half ago, Oahu passed Bill 89, which was made to crack down on all the illegal rentals in residential areas. I know guys who still run, and I also know guys that have been cited. Its really your tolerance for risk. I know after the Bill 89, I wasn't comfortable running one anymore. Other islands have different rules, just fyi too. 

Hey Nathanial! Love your research and enthusiasm! You remind me of where I was 2 years ago lol. It sounds like you are pretty spot on with most things. I think the DOM sounds a little high, but Im not  realtor and havent kept up to date on the current statistics. Good luck in getting started!!

@Aaron Cooper If you purchase an investment property together with your mom, you can have her co-sign the loan with you. For conventional financing (best rates) you would need to buy it in your personal names and not in an LLC.

If you did commercial financing you could buy it alone based in the cashflow of the investment. This would be a higher interest rate. Also, knowing Waikiki, you would need a large down payment in order for it to cashflow and meet the lender DSCR requirements.

Either way good luck!!

@Travis Carvalho I think percentages are more rule of thumb. You really need to underwrite each deal on its own depending on size of rehab, condo vs single family, permitting, length of project, etc.

That being said, all in at 70% is a healthy margin.

Purchase a house for 550k, rehab for 150k, sell for 1mil. Thats a 300k profit (minus your realtor fees) if the market drops drastically and 1million dollar houses start selling for 800k you still make w profit.

Same as always honestly. Run conservative numbers and take into account the possibility that the market could drop in the next 6-12 months. 

You'd need to do the math to see at what point you break even. (The difference in monthly payments make up for the cash difference upfront). Then decide if that timeline makes sense. Will you sell or refinance before that time period?

But from a general peace of mind standpoint, I love the super low-interest rate. I doubt rates will ever get much lower, and it's just nice to have the smallest monthly payment possible as you plan for the next 30 years lol.