All Forum Posts by: Loren Clive

I would stay also. Having the franchise income will put you in a great position to begin acquiring real estate and is well worth the two-year sacrifice. IMO you're not going to find a new 9-5 in two years that will allow you to earn as much. Plus, you're not going to qualify for a loan unless you're in the same industry for the past two years, so you can't try out jobs in different industries.

Suck it up, do your time, then start investing. Hopefully in two years the market will have cooled a bit.

BTW, if this is chick-fil-A, you gotta do it! Those things are cash cows!! I looked into doing a franchise myself, but as I already own two other businesses, wouldn't work for me.

Hm, here on Maui this is pretty standard practice. You could offer to buy the materials for him?

I have three condotels on Maui. All of them cashflow. But really I only use one of them personally on occasion. It's a hustle!

in my experience, second home mortgage rates are lower than investment properties. but if you're buying a home in Hawaii on the same island where you live, often lenders will not qualify it as a second home.

tax implications would be something to discuss with your accountant

Abner, it depends on your lease. If your lease is fixed, you don't have to give any notice not to renew it. If it's got that month-to-month box checked after the fixed term, you need to give the tenant 45 days notice. 

Either way, I would still communicate with your tenants as people often don't read their leases. 

Need more info . . . Are they both going to be on the loan? Is she contributing cash?

I would advise if your friend is the only person on the loan and can buy the house by himself, just put it in his name. This helps if they ever break up AND if she ever decides she wants to buy a house. 

Because if she's not on title, she can be a first time homebuyers/owner-occupant for any home she wants to buy, and take advantage of the preferential interest rates for owner occupants.

Another factor is that if both are on the loan, they will both be liable for the entire debt, and it will hurt them going forward because of debt to income ratio if they want to buy more properties.

He can always give her a life estate in the unlikely event of his death if it's an inheritance issue. In which case I would speak with an attorney.

Bottom line, whatever they decide it should be crystal clear going in to both parties.

Midway Realty 808.321.6173

https://www.midway-realty.com/...

owners are investors themselves, nice guys

Make them fill out an application before scheduling a showing. If they pay, they will not flake.

Then text them the morning of and only show up if they text you back that they're coming.

The Maui market is way different from yours, but what I do is schedule my first showing, turn it into a 30 minute open house and jet. The glut of people really shakes out who's serious. I had five people show up last time, rented it the next day. 

Other red flags that indicate you should not show to prospective tenant:

1. trying to negotiate rent upfront
2. saying, "wow that's a lot" or "that's expensive"
3. not listening
4. their needs don't fit your property, i.e. they have a dog and the apartment has no yard
5. being rude
6. not having a car
7. standing you up for an appointment already
8. having way too many people for the occupancy of the unit
9. wanting to sublease
10. wanting to trade landscaping/maintenance for rent
11. pointing out every little flaw at the showing, yeah you want that tenant

Don't be afraid to be firm. Remember, life is a continuous interview process, and people are always trying to see what they can get away with.

I always tell prospective tenants as well that when they can move in is a big factor in the decision, i.e. I'm more likely to rent to a qualified applicant willing to move in immediately versus someone who needs to give 30 days notice. You have to spell it out to them that they might need to pay double rent for a few days or weeks to get the apartment. 

I'm always amazed how people are so self-absorbed, they want to tell you their whole life story, accommodate their schedules and measure rooms to fit their furniture, but don't know what really matters to landlords which is #1 paying on time and #2 not being a hassle. 

Good luck and don't take any crap!

There are many homes in Maui that would work for you. We're not only the best island in the world, we also have the lowest owner occupied property tax rates in the nation. And skyrocketing rents. Best of luck in your search!

Definitely list it. A lot of folks are looking for budget accomodations. Moreover, in my experience reviews don't matter all that much on Maui since there we have a shortage of STR.

You can always create another account and list it once renovated so the old reviews won't affect the new listing. 

I have a contractor referral for you if you don't mind using unlicensed people. DM me.