All Forum Posts by: Loren Clive

 Aloha, Tiffany! Yeah it is pretty hard to cashflow at current prices unless you manage yourself. I own two STRs, in escrow on a third, happy to chat with you. I also know a great agent on Oahu if you're interested in that market. 

Maui has grappled with this question for ages and enacted all kinds of laws to restrict short term rentals. Unfortunately most of these laws go unenforced, yet locals still blame the tourists for everything . . . including the housing shortage which is in fact created by OVERREGULATION and restrictive zoning laws. Studies have shown restrictive zoning, in particular related to density, does adversely affect low-income families. https://www.brookings.edu/blog...

I agree that vacationers get a bad rap for "spoiling neighborhoods" and late night parties when in my experience these complaints are equally true of local families, be they homeowners or long-term tenants. I should know. I live down the street from an illegal cockfighting operation, which creates lots of noise and parking problems, and let me assure you there are no tourists involved in that. 

Does it bother me? NO. Would I ever dream of turning  my neighbor in? NO. Actually I'm kind of proud that this remnant of local culture survives, and aside from the illegal aspect it does fit in with the AG zoning. Bottom line, you can't control what your neighbor does unless you want to live in a Communist society.

We should hold our leaders accountable for this housing shortage, which again on Maui is totally the result of it being so hard to develop, rather than letting them pass it off onto the short term rentals. I can't tell you how many affordable housing projects have been rejected by the County Council who continues to gripe about the housing shortage THEY created. Now their big idea is to phase out the areas already zoned for short-term rental!

This is a state-specific question. Here in Hawaii you are allowed to charge DOUBLE deposit for pets, which is what I do. But different states have different laws.

I own two. 

Bank of Hawaii. Not sure of the LTV but they have awesome low rates and low cost loans

I moved to Hawaii in 2005 fresh out of college with nothing. Never owned a home, had little cash, no career. I started selling real estate and investing and now own 8 homes on Maui. It can be done! 

Your advantage is the VA loan, the best and least expensive loan you can get. Go house hack!

Hm, you need to check what the laws are in Colorado. But here in Hawaii, if there's no possession, the lease is not binding. I had a similar situation happen where the prior tenant did not move out timely, the new tenant could not move in as scheduled and I simply returned their deposit no damages, no problems.

I agree these folks sound high maintenance and I'd go with your gut feeling of NOT renting to them. 

I would wait until you have a property in escrow. LLCs are not necessary, in my opinion, if you are the only owner. Better to get robust insurance and an umbrella policy.

Nonetheless, it's almost impossible to get financing in a LLC name, so you can decide after you close if you want to form a LLC. You apply for one with your state business registration.

I'd do direct mail and look for seller financing.

Not enough info to make a decision. Where is this property located?

Does the rent roll include the rent you're paying to yourself?

Calculate your monthly net then your cash on cash return based on your equity in the property. If you can sell and acquire a property with better return I would do it. But I would list in MLS probably since the buyer's activity sounds like it's a hot market where you are.

Most importantly, you want to make sure you can still qualify for a mortgage without the income from this property.

A smart businessperson once told me: never sell something that makes you money