All Forum Posts by: Dominik Makaneole

Great, I'll do some searches in Oklahoma.  I was an Artillery man so I spent some time in the OK state.  Thanks Kiera.

@Nicholas Rice keep her at the lower rate give her very clear expectations of the landscaping standards.

@Peter T. Great point on valuing your time. I do the same analysis however I change my oil because it’s fun for me. It reminds me of the times my dad would show me how to work on cars. Try not to laugh at me 😂

@Maria Marrero if you chose her make sure she can also provide the deposit. I have rented to HUD tenants and I have found the ones that can have the deposit are usually good to go. If they can't budget the deposit they probably can't manage a monthly budget as well.

@Ana Gazawi search the bp podcast for a women in Detroit. She started with $5k and used no interest credit cards to finance the rehab then rented out the property. She was successful because she knew the area. Especially when most people ignore areas so cheap.

Aloha all,  In the last 9 years I've been moving into duplex's on Kauai fixing them up moving out and renting them.  It's been a grind,  At first I didn't really search for great deals.  Instead I would find a homes I wanted to live in that also had an attached home I could rent to "help" with the mortgage.  My last duplex I got into 2 years ago was purely an investment I didn't move into.  I looked at it purely for cash flow.  It opened my eyes to what was possible even in a high priced market.  I learned how to use contractors and what banks look at in order to get funding.  This last 9 years I've learned how to be a landlord and the laws that govern them in the my state.

My current situation is as follows: I currently have a job that pays $100K a year. I have 6 months saved up to pay all my bills.  I don't have any car loans or credit card debt.  My credit score fluctuates around 770.  I just bought a new home not as a investment, but it will more than likely appreciate. It has $200K equity into it. Truthfully I needed a break from living in homes that needed serious work while fixing them on my few days off.   My wife probably would divorce me if we did another one.    Currently all my rental units have positive cash flow of $3500 a month.  

Where I want to go in the future. I want to get get more deals and quicker. I've been looking out of state. I've been looking at vacation rentals in my area.  There are some properties I've analyzed that have good cash flow but is solely dependent on tourism and there are many many circumstances that can disrupt that which would leave me  with a high mortgage.  The out of state markets look more of a risk reward I can handle.

I've been looking for homes that are $100K-$300K which is a price range that I can handle if the reward is good. $300 Cash flow a month preferably more. I would be happy with 10% cash on cash ROI however cash flow is more important to me. I prefer a property that doesn't need major rehab because I will be working with a team I have never worked with before. I've been googling "best rental investments 2019" and other type of generic terms. I have a plan to do at least 3 property analysis in new markets. Over time I expect to see a few markets stand out more than others. When this happens I will look to partner with investors to get my feet wet.

I would like to hear from members whom were/are in a similar place as I am today and any advise you can send my way will be greatly appreciated.  I am also fairly familiar with rental properties on Kauai if anyone is interested in a high priced market with a huge rental shortage for the working class and will not be going a way anytime soon.

If any members are interested in visiting Kauai, I can try my best to give you advise however I don't get out much.  I work too much.  I have lived on Kauai for 30 years so I might be able to answer a few questions. lol.  I'm thrilled I stumbled onto Bigger Pockets and have been watching podcast that are pure gold.  Continuing to learn continuing to earn.

@Isi Nau Nice quick, down and dirty assessment.  We have those castles on Kauai as well. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Kalaheo.

Purchase price: $570,000
Cash invested: $10,000

Long term rental duplex

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

Wife bought this one, initially lived in this one. We could see that there was wasted space in this property and added another bedroom to increase rent.

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

Realtor.com

How did you finance this deal?

traditional loan, took out equity for down payment

How did you add value to the deal?

Had no idea what we were doing

What was the outcome?

It is currently only making $500 monthly cash flow. It should be $1200 cash flow however a family member is living in one of the units at a severe discount.

Lessons learned? Challenges?

Don't let family know I have rentals available. I have learned a lot about being a landlord on this property. rental prices, refab prices, the eviction process which included judges and sheriff departments.

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

Used a real estate agent to purchase this property. Ran into issues with county planning and what the seller was claiming was permited.

good job learning and your in the black.  win win..