All Forum Posts by: Dominik Makaneole

loopnet.com  is more for commercial real estate.  most of the listings on there have detailed information of the demographics.  Not all of them but most of them do.

You cant go wrong with updating kitchens and bathrooms.  You can always paint the exterior even if your property is already occupied. You can get creative by adding a wall, door, and a small closet to an extra living room and create an extra bedroom.  In my area thats an extra $800 of rent a month.  The project usually cost that much.  To spot potential projects keep an eye on what 3 bedroom square footage are on zillow.  When you see a 2 bedroom with the same square footage you might want to look at it in person.  If you're asking how to do these things you would be suprised what you can learn on youtube or those orange homedepot books.

If they are good tenants that you want to keep.  I would work with them.  I wouldn't put anything in writing because you don't want to acknowledge you are giving them permission to live there just in case an issue arises.  Talk to them in person or on the phone.  If you are paying any of the utilities than I would charge more.  Where I'm at the utilities are about $100 a person a month.  

Aloha BP nation,

Earlier I used social media sites to get recommendations for local contractors from local people.  I do realize that I will get a bunch of recommendations of friends and family but a few names are starting to come up more than others.

My next step is to send out the following email and see if I can get some replies.  Its tailored to my situation.  I'm using email because I work the night shift and I don't want to call potential contractors in the middle of the night.  Looking for any insight you all can provide.

I don't want to send a winded email.  This is just a feeler to see if the contractor has room for growth, is licensed, and is familiar with the kind of work I want done.  I will have a follow on conversation if I get replies that will get more into specifics. 

Aloha,
I'm reaching out to you because you came recommended. I'm a real estate investor in our area looking to expand my operations. A little about what kinds of projects I usually do: I find homes that are usually in bad shape and purchase those homes as is. What usually happens is an overhaul of all bathrooms, kitchen, and floors. The properties usually have some trim or deck repair that is needed. I like to put new appliances in and finish it up with a nice paint job inside and out.
I try to get a property looking better than any of the other rentals in the area. Kitchens get granite quality counter tops, real wood cabinets, stainless steel handles and sink. I like using tenant proof material such as rubber laminate flooring and some cases tile through out the kitchen and living room areas. The bathrooms get a full tile replacement or combination of a new bathtub with a new toilet and vanities. The more modern looking I can get the Kitchen and bathroom the better.
I have worked with contractors in the past who work for cash only and I have always paid them promptly on agreed upon schedule. I can give you a list of contractors I have worked with in the past if you like. I have nothing to hide. However, my current situation requires me to work with contractors whom are licensed and insured and pay their taxes so I can account for theses expenses on my own taxes.
If you would like to work together on project with me. Please let me know so we can continue to vet each other and get some money in both our pockets and grow a lasting partnership.
Thank you in advance for your time,
Dominik

Thanks everyone, 

Disclaimer.. I haven't read every post on this thread.  I have read the first few pages and the last few pages.  A few years ago I didn't put much thought into this strategy mainly because I didn't have much equity in my properties.  However times have changed I have equity in several properties and I have a job that allows me to payoff a $200K heloc in less than 2 years.  I've been looking at interest rates and the very first one I found is from American Savings Bank.

"The promotional rates for non Kalo Plus or Kalo Deluxe customers are 2.00% for two years, 3.00% for three years, or 4.00% for four years. Automatic payment from an American Savings Bank checking account is required for this promotional rate."

With these promotional rates I do believe it would be worth exploring.  At this time I don't know what the loan origination fee would be or any other fees to make a decision but I do believe it is worth looking into further.

Welcome to BP.  Also, get on youtube or itunes and search for biggerpockets podcast and start listening its awesome.  If you have an interest such as how do I find a great deal and finance the deal, do a search for "biggerpockets podcast finding deals financing."  I have a hour commute to work so I've been listening to the podcasts you wont be disappointed.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $618,000
Cash invested: $14,000

New home built be DR Horton. Great location. 0 Cash flow. big potential appreciation. I don't consider this an investment, but my wife and I wanted to live in a home that didn't need any work. Taking a break from living in rehab houses which we were fixing up while our 2 little children ran around a construction zone.

What made you interested in investing in this type of deal?

Very close to the hospital and biggest hotel on the island

How did you find this deal and how did you negotiate it?

found it driving around the neighborhood that is close to the most jobs on the island.

How did you finance this deal?

Used a 20/80 conventional loan

How did you add value to the deal?

added HVAC and landscaping

What was the outcome?

Nice home sitting on $200K equity which I can pull 90% out when next deal found.

Lessons learned? Challenges?

Sometimes happy wife = happy life is better than a cash flow property.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $196,000
Cash invested: $4,000
Sale price: $305,000

Purchased this home right before the boom, sold before it crashed. Just dumb luck

What made you interested in investing in this type of deal?

I knew I wanted to own real estate and this was the first time I could qualify for a home loan.

How did you find this deal and how did you negotiate it?

Driving around looking in my neighborhood

How did you finance this deal?

used the VA loan

How did you add value to the deal?

It was brand new

What was the outcome?

sold for profit, ex wife got most of the profit.

Lessons learned? Challenges?

You're spouse is the most important partner you will have, make sure they are trustworthy and seek someone whom you love and would be an excellent business partner.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Honestly, I don't remember their names

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $196,000
Cash invested: $4,000
Sale price: $305,000

Got lucky

What made you interested in investing in this type of deal?

I knew I wanted to own real estate and this was the first time I could qualify for a home loan.

How did you find this deal and how did you negotiate it?

Driving around looking in my neighborhood

How did you finance this deal?

used the VA loan

How did you add value to the deal?

It was brand new

What was the outcome?

sold for profit, ex wife got most of the profit.

Lessons learned? Challenges?

You're spouse is the most important partner you will have, make sure they are trustworthy and seek someone whom you love and would be an excellent business partner.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Honestly, I don't remember their names

according to zillow the property tax $2182. You can check this by searching for the county tax clerk. usually there is a website that the county uses. To find what properties rent for you can use a website called rentometer.com. You can also do a search on craigslist to get a feel for the market. search county, how many bedroom, bathroom, etc. Also, because its a multifamily it might be posted on loopnet.com which deals with commercial properties they usually list CAP rates and rental averages in the area. Good luck hope this helps