All Forum Posts by: David Varvaro

Hi @Tanya Mendija I received it and responded.

Sorry @Greg Gaudet I will be in LA 

Thanks @Mike Neubauer ! Hi @Zasha Smith DM me. We have some new options you might be interested in.

Hi @Brad Rondeau , you might want to work with a Real Estate Transaction Coordinator to help you with the For Sale By Owner process. You just pay a flat fee and they will provide all forms, know what documents you need (and when they are due), and help you throughout the entire process. 

There is a lot more to do than just filling out some forms. They will also order the Natural Hazard Disclosure Report, Preliminary Title Report, City Report and the Home Warranty, and any other items needed. On top of that they will be the one coordinating with the appraiser, loan officer, and escrow to make sure all deadlines are met. Most real estate agents use them so that they don't have to do all things themselves. You just want to make sure you get an experienced one who is licensed. I have an amazing one that I can refer you that serves all of California and can help answer any questions you have as well as get your property listed in the MLS. Private message me for contact info. I can also refer you an escrow company and title company if you need them.

@Jeremy Segermeister You can hire a Real Estate Transaction Coordinator to do it for about 1/3 the cost of an attorney. PM if you need one. 

@Robert Silvernagel Just wanted to give you my 2 cents on using your housecleaner as your On Island Agent. I would strongly advise you to use the service of a property manager who provides On Island Agent service over your cleaner.

Your On Island Agent needs to be available when an emergency happens. Most cleaners are busy cleaning and can't respond right away. They also probably won't be available 24/7. Most emergencies need to be handled immediately. What happens if the emergency is at 2 am and your cleaner doesn't respond? 

Also, most cleaners here aren't the greatest dealing with your guests. If you ever have a situation where your On Island Agent has to have interaction with your guests, you have to keep in mind this person is representing you. 

In addition the cost is roughly the same whether you are using your cleaner or a professional management company. Message me if you would like some referrals of property managers that provide On Island Agent service.

Aloha @Robert Silvernagel,

I own and manage vacation rentals in Kihei and have had no problem renting 2 bedrooms units as long as they have 2 bathrooms as well. I agree with @Patrick Franta and @Mike Neubauer that a 1 bedroom will give you a better ROI though because you can still find relatively decent deals on 1 BRs compared to 2 Brs.

As far as the 14.41% in TAT&GET taxes, Mike is right that guests do not like you requesting the additional tax separately so it is better to roll it into the price. This is the primary reason I prefer VRBO over Airbnb. VRBO collects the tax for you as a separate line item on top of your rate. Guests on VRBO never question this because everyone on VRBO does it.

And I think @Alanna Schroeder advice is definitely something most off island owners don't think about. You are going to pay much more for any type of work done (not including all the headaches associated with it) so in my opinion it's better to buy something that's already turnkey. 

I also think that if there is any downturn, entry level vacation rentals in places like Kihei will feel it much less than high end luxury vacation rentals and hotels.  People will still want to go on vacation but they will just budget a little tighter. At the very worst case, as Alanna mentioned you could convert it to a LTR. There is a huge shortage of long term housing on Maui and rents are definitely not going down so at worst case you would still have this option. 

Aloha @Guyton Galdeira. Can you provide more details about this deal? How much did you pay? How did you finance it? How many bedrooms, bathrooms etc.? Was it already being used as a vacation rental or hostel? 

Hi @Account Closed,

I definitely agree that if you are flipping these days you must turn out a very high quality product. In higher end areas, it's more cost effective to just pay the land value and do a new build because that's what end buyers are expecting in that 2-4 million price range. I def have seen developers dropping their listing prices as more and more new builds come on the market though.  Usually if you are priced right and have a quality product in the right neighborhood, it will sell. It's just taking weeks not days to sell now.

@Kenneth Kussman Entry level in my part of LA (South Bay) is Hawthorne, Gardena, Lawndale, Lomita, parts of Inglewood and Lennox. Basically working class neighborhoods that aren't the greatest but aren't war zones either.The key is finding the little pocket neighborhoods.  Prices for fixers usually in the $500-$600K range.