All Forum Posts by: Durga Prasad

I am looking for reliable property mangers in Maui, HI. Since my main goal is to 

get my feet wet and learn as much as I can, I would like to opt for an Hybrid model

i.e I will manage channel, pricing etc. but need some help to take care of cleaning, handyman, 

emergency contact, guest contact etc. Thanks!

Mark, Thanks for pointing towards a different thought process. I am mainly thinking about replacing it with STR but my main hesitation is KNOWN vs UNKNOWN territory. I considered increase in rents and the numbers are based on new rental projections. You are right 3.5% loan is great to have and I can't find it anywhere these days. Rentals around 4k/months so I would say even replacing that amount with STR would be little difficult. Another way I see is buy a small STR property to offset this and wait and see but I will be loosing TAX advantage. Of course, I can do 1031 exchange but it's not same as NO TAX.

 Thanks for the insights! I am aware of current market situation and raising interest rates but still, if you think about long term, historically, asset classification comes into picture, for example, 2008 financial crisis properties lost 50% value in California but recovered pretty well. If you go back to fundamental and think about why properties/anything  goes down or goes up depends on Supply and Demand. I can pretty confidentially say Supply is very very low (at least at this location, read as near airport) hence even interest rates are at 5.5% prices are not coming down and eventually current prices will become the base price. Now, if there are lots and lots of new supply is coming into market then we are in different scenario. This is one of the main reason for me....I know my HEART says DON'T SELL, while logic says OPPOSITE.

First post here, thanks for the wealth of knowledge, I am facing a very challenging situation, hopefully experts can weigh in…

I currently have a SFH in a great location, excellent school district, have been renting it out for the last 3 years, and have a good cash flow. I took cash out to purchase another property (land) but the mistake I made was it was a 15 year fixed at 3.5, instead of 30 year.

With recent increases in property taxes, HOA fees, interest expense, my monthly rent will be almost equal to ALL expenses EXCLUDING principal so if I keep the home I would be in NEGATIVE cash flow (If you consider principal) of around 2k/month. I am currently contemplating to SELL or KEEP RENTING.

SELL - I can free up and buy another property but with int rates are higher than what I have so not sure if that’s the right option. Another advantage would be saving on TAXES around 40K. Disadvantage would be paying a higher int rate on another property, which I am not sure about rentablity, location etc.

RENT - Keep pay principal from my pocket and consider that as savings, hope for appreciation, even 3% appreciation will be around 24K, and sell in maybe in 3-4 years. Meanwhile if int rates come down refinance it.

Location is excellent as inventory is very low, to give you a perspective, Opendoor raised an offer by 40K in 40 days.

I would appreciate any help, am I missing anything to consider? I am sure someone would have experienced these scenarios.

Cheers

Durga