All Forum Posts by: Lake Lutes

Joe - you're well articulated with great thoughts (and maybe had too much coffee?). For the most part, your thoughts are coherent and true, however there are some assumptions being made that won't always hold true. The above example is the classic example of, not necessarily the story of inflation, but someone plain and simply in the rat race - your average joe American: go to college, incur debt, get a low paying job not leveraging your degree, not able to cover or pay off the debt, and move along down life's line feeling sorry for themselves. I think what's lacking in your example is creativity. Every partner I have ever had in real estate, or financial mentor I've had in life, started off much of the same way the story above starts. Go to college, incur debt, and find a job out of the gates that doesn't cover life's expenses. The important thing is to not settle and strive for more. Leverage free time to make more income via side hustles. Eat ramen and bunk with parents or friends for a year to save $3K a month instead of breaking even every month, etc.

While I can and do acknowledge inflation as a major issue, especially in the COVID era, there are ways to continue moving upward and being successful for those who go and get it, and don't settle. By the looks of your well articulated piece above, I'd venture to say you have much of that drive and ability to make it happen. Best of luck man! Thanks for the read.

@Matt "Roar" Gardner - Matt Blackburn is a college roommate and great buddy of mine - we're in contract now in your area. Would love to connect soon and chat all things Florida panhandle. Hope all is well!

Hi Shanna! Sounds like a great investment opportunity. If your numbers are right, it sounds like a worth while risk. I live in Hawaii full time and will say we've had an insane spike in tourism again - lots of visitors and demand for rental cars, dinner reservations, room rentals, tourist activities, etc. I will say, however, that Hawaii's economy is very frail. If COVID rates spike again due to the Delta variant, the Hawaiian government is one of the most liberal in the country, and its possible there are additional shutdowns/mask mandates/etc. As it stands, we're one of the few states with a continued mask mandate and continued COVID restrictions. This could derail a short term investment property and leave a huge hole in your pocket. Last thing to consider would be the ever changing short term rental regulations. Late 2019 they banned so many short term rentals and retracted their permitting for such rentals, and I could see them becoming even more restrictive to stimulate money back into the hotel industry - this could also force you to go to a long term rental plan and slash your margins. Just food for thought - everything in real estate is a weighing between risk and profit - decide which is more prevalent here and jump!

Whats up Eric! I am an agent here in Hawaii and active duty Air Force as well. Let me know if you want to connect and talk shop! Been here for about 3 years investing and running the agent side of things so would be happy to help in any way you need. Hope to connect soon - aloha and welcome man!

Hi Liana! Super fun to read through your thread - thanks for sharing. Like anything, there's pros and cons in both directions. One thing that is for sure is the market here on Oahu is and has been insane for the past 16 months or so. If you've ever considered selling your home here on the islands, there's never been a better time. Let me know if you want to chat about it! Aloha

I am buying right now! The market is tough, but deals can still be had. In addition, my team provides me a list of off market deals weekly from their lead generation, so that helps. Happy to share if you reach out! Aloha

Aloha from Oahu! Cashflow is a really tough goal to have on the islands, especially Oahu. However, it is definitely still possible. Of course, it's always going to depend on your mortgage which varies greatly depending on how the property was financed, but your best bet is probably going to be a property with multiple units, or a property with an "Ohana Unit" as we call them here in Hawaii. Think of these as "mother-in-law" units. Using a real current example on one of my investments, the home in the ~$750K range leaves me with an average mortgage of about~$3500. The 3/1 main home and has a 2/1 Ohana unit downstairs, renting for $2750 and $2000 respectively, cash flowing this property after all expenses are paid. To be fair, these kinds of deals have been much more difficult to come by in the last year and a half with the recent increase in demand. Nonetheless - you CAN cashflow on Oahu, you just have to be creative! Shoot me a DM if you'd like to discuss more.

I would absolutely add Lake Tahoe California to that as well - the market is so slim on inventory and over saturated with buyers. I don't necessarily think people in those markets are thirsty for affordable deals, they're just looking for deals period! Even those willing to overpay aren't landing deals in some markets right now.

Well done @John Mayer! Tough to find deals that work this well in this market, but they're out there. Came out really nice.

If you click the link I posted above, then navigate to the left side where it says "approved STRs", it has a list of all addresses and properties!