All Forum Posts by: Joe Sillaman

HI Ally,

I was AD out at Hickam, now a Reservist now RE Agent/Investor in Hawaii. 

I can certainly tell you Lease Hold is not the way to go unless there's an option to buy the fee down the road. LH units are dying breed here in Honolulu. As time on the lease gets shorter the harder and hard it is to sell nor get a loan on. Although they make sense in terms purchase price usually the older building maintenance fees are high as well as the extra lease fee. However, most of my experience with LH is at Discovery Bay and Executive Centre.  

If you haven't used you VA loan yet. Try buying at Fee Simple, live in it for a year as required and then rent? As AD E-5 and up you should be able to find something.

Not sure why there's so much negativity for speculation in Hawaii? I bet those who bought 30 years ago on Oahu, HI are surely not disappointed at their investments. But to each his own. No one can really say where investment is actually heading we just have  rely on historical data to help guide us ahead. I guess if the volcanos start blasting off and WWIII happens with China or North Korea we're screwed but if not...Just food for thought....Median price of home on Oahu in 1985 was $158,600, in May 2014 it's $682,000(Honolulu board of Realtors data). I know it gets old I always point this out. 

But I wish I could flip in HI too, just need off market deals and $$$! 

Like Mike said cash flow rentals are tough, breaking even in many cases is a win. I believe the best game is vacation rentals if you decide a buy and hold strategy. Of course flipping is ideal too if you can squeeze deals off market. Price point is high but the speculation strategy is proven and as long as you have a beautiful ocean view, easy beach access, great decor, and good reviews... You should have no problem getting your place rented at 90% vacancy. However, I know the 30-40% PM fees can take a good bite out of your net. I mean if you're sacrificing $100-$200 every month but gaining something like $5,000 per year in increased value it might just be worth it...(I own/manage a beach front Vacation Rental in Haleiwa. 

Buy and hold is tougher in Hawaii. I cannot speak for long term buy and holds as I run a vacation rental. But the cost to get into a decent property to try and cash flow is tougher. Also, with most properties in Hawaii having been built around the 60s and 70s, the general maintenance costs are extremely expensive. Depending on the zip code your property is in costs can sky rocket lol. There are some guys who will cut deals but very few. If you have the $ and are in it for a speculation game it's worth it though. In 1985 median price for a Oahu home was $158,600, 2013 it was $650,000. 

9 times out of 10 you property will be sold for a higher price with greater net to the seller using a Realtor than if you didn't. Not mention save you many headaches avoiding realtors calling you on FSBO leads.

If you have case numbers or a last name you can search for Probate leads online from the Hawaii State Judiciary website.

Active Duty Air Force Transportation Officer when I started. Now AF Reservist/Realtor/MBA Student/Vacation Rental Property Manager.

Social Media, make your profit pages, invite friends to follow, share value added content on your page and within other social media groups

Should I mention Hawaii as a awesome vacation rental destination! I own and operate one and have never had to worry about not getting guests or making a healthy net profit. It is a higher entrance cost but well worth it!