All Forum Posts by: Joe Sillaman

Aloha @Brandy Arciga best of luck to you! If you need any help with anything Oahu RE just let me know? 

Buy what makes you happy. #YOLO

Netlending is great on island broker that will probably be able to get you these best rates and APR. I send many of my buyers to them and just closed on a loan using them as well. You could do a 5% down conventional loan, no need for 20% down.

@James Meyer

It would be about 45 days to refi to conv loan. Then another 45 days to use another loan to purchase a property. 

Refi your VA rental into a conventional loan then you'll get your full VA entitlement back. You just have to live in the new place for a year.

Jonathan Paz Consider population increase in regards to high demand low inventory. Oahu population increase are projected to increase by 4% by the end of the decade. The island has had over a century of positive metrics illustrating the fact that Oahu is growing in population and values you. We have a housing deficit of 60,000 homes. Most cheaper areas on the mainland aren't anywhere near that...supply and demand economics. There's only so much rock to build on. Take a look at the Honolulu board of realtors stats they'll show I you. In 2008 process decreased 13% max and recovered in 3 years. This isn't a up and down market. It's a steady uphill market with slight bumps on the road. There are millionaire granny's all over Oahu who bought small houses for $50k in the 1950's that are sitting on lots values over $1M. Sorry everyone I know I'm a broken record...

Hi John, I'll put this to you simply. If you do not use your VA loan to buy property out here you are sincerely missing you on a amazing opportunity. Attempting to cash flow any BAH is misguided, with rents rising along with the market you'll probably spend most of your money in living expenses with hardly any left over. Looking at it purely as buy and hold cash flow investing scenario it doesn't make sense. However, appreciation gains will more than make up for any measly cash flow returns. With literally 0% money down at a good rate(3.25% I just locked in for VA) you can buy a home that has the potential to double in value every 10-15 years. You probably don't have $1.5M+ to buy a local multi-family so you'll have to either go SFH or condo long term buy and hold. With Vacation rentals you will have to pay around 14% in taxes off gross rents. They're also not technically legal and require permits to be legal...state stopped issuing permits in 1989. Any feasible VRs will need to be on the beach or have beach views and be close to destined shopping and entertainment venues equalling a high purchase cost. I think the best bet would to be buy a house or condo close to the military base you will be based at and rent out rooms to other service members. Then when you leave continue to rent out to military members. They will pay more for nice places with a view that are close to restaurants and nightlife #miltarybachelorlife. You might be in the negative on cash flow every month but you'll make way more just sitting on a great property on Oahu than you would ever make in a cheaper mainland market. For example, I bought a VR in 2012 for $475,000 I'm making around $700 net every month. Now the place is worth $530,000. This unit would sell in 7 days if I put it to market now. In 2013 I also bought a SFH in AL for $62,000, it nets about $350/mo but has only increased in value up to $78,800, this unit would probably take half a year + to sell. Which would you rather choose? You'll need multi AL units and tenants to make what 1 Oahu property could get you. Granted my $700 net isn't normal but the equity gain is.

@Duke Hartman Have you considered Lending Club or Prosper for a P2P loan? Lending club will loan up to $40K. 

@Account Closed If rail even makes it that far now fi you've seen the recent drama with it lol. There are many town buyers now. They have no choice if they hate traffic and work in town as is the case with many of them. Prices are too high indeed but what choice does everyone have. Trying to time the market isn't worth it. Renting is a automatic loss of $30K+ a year. The next crash won't be due to sub-prime loans as it's pretty hard to get one these days. It'll have to be something like a tech industry crash or a crash of some sort from China. 

You'll probably have to look out of state for multifamiles with reasonable cashflow. You most likely won't be able to find anything with good Cap Rates. But if you can manage it just sitting on real estate here on Oahu will ultimately make you more money than buying in a low cost area off island.