All Forum Posts by: Daniel A Lee Kim

@Dennis Nikolaev

Hey Dennis, 

Bryan is correct with regards to STR, unless you have a license or you are in an approved zone you cannot STR. Minimum STR period has changed to 90 days now. Here are some recommendations I give to my clients and friends.

STR:

-Buy a condohotel that you can self manage.  Managements fees are pretty high and can eat up your profit.  Probably not the best option for house hacking since you have children.

Househacking:

-You can buy a house that has an ADU and you can rent those out to long term tenants.

-You can also a house and put an ADU yourself and then rent it out. Forced appreciation through the ADU, natural appreciation (avg 3-4% yearly with the exception of 2020-2021), and rental income from ADU.

Hi @Manuel Razon another recommendation is to look at listing that have been on the market for a long time, there are properties that need substantial work and are priced descent.  Once you found it, look at comps and see what the profit margin looks like after considering holding costs, rehab costs, selling costs, and taxes.

 Congrats @Joel Bongco on that successful flip!  I’m a realtor but also an investor and there are other things to consider when doing a flip like this as well such as:

-Not only the length of the lease term but laso the years remaining and who the owner is.

-Location is key, with a lease hold like this, you are targeting buyers that want to buy cheap but yet get to enjoy the “vacation” lifestyle, while making a few bucks here and there.  There isn’t a huge pool of leasehold buyers.

-Unless it is cash, lending can be very complicated.

Lease hold can be a great way to flip, but I normally stay away from it as an investor unless there is a way to make the money back AND more before the lease is up (worst case scenario).

@Kelly Alliger That is up to negotiation and current market.  When they renegotiate the lease terms they will base it off of current market so it could stay at 500 or it could increase.  Most likely it will increase like how rent tend to increase.

 @Fernando E. First and foremost, congratulations on selling the property AND making the decision to invest it to continue to build wealth!  With your price point of 125K in Waikiki you are either looking at a cheaper studio condo hotel such as Ala Moana Hotel Condo or a leasehold condo which tends to depreciate.  Additionally, with a leasehold there are certain requirements for the lenders which make financing a bit more challenging.  One key thing you did not include on your calculation is the maintenance fee which can range anywhere from 600-1200 per month.  Newer development tend to have lower maintenance fee.

@Account Closed Aloha Mike, just like the mainland HI real estate actually boomed during the COVID-19 pandemic.  Although tourism was low there were lots of buyers from mainland and international purchasing properties on Oahu.  The pandemic introduced and normalized “remote” working which added fuel to the fire and we have seen a huge growth of mainland buyers here on Oahu.  Additionally, Hawaii is an international vacation hot spot making it highly desirable to international buyers as well.

@Marvin Bertin Hope you were able to find what you were looking! Wish I saw this sooner, I’m an investor and an agent.  Let me know if you have any questions about different strategies for the current market and market status.  I love chatting about real estate, especially with like minded people (investors).

@Joe Splitrock thank you for your input.  I didn't know how depreciation was impacted by  1031 exchange.  Good to know!

Good morning BP community!
We are planning on doing our first 1031 in June 2022, we will be selling our townhome is VA and buying a 4 plex.

So far we have begun talking to our realtor in VA and have a couple QIs identified that we could work with. Based on the realtor's input we have decided to list the property in June.

What are some things we should know and prepare as we get ready for it in June?

Any inputs are appreciated!

When you say "lets borrow the 25% down at 8%" how does this work? Can you finance the downpayment to finance another loan? Wouldn't that come up during the loan process?

Does anyone know how this is possible? Trying to learn different ways to finance.

 Thank you!

@Zach Schwarzmiller hope your journey has gone well, i would like to revive this forum and follow up on how your journey has unfolded, the goods and the bads.  Some of the challenges you have encountered and any advise for a hopeful vineyard/winery owner?  THanks alot!