All Forum Posts by: Manaia Alalamua

@Account Closed

I am not an expert at all. However, I have a couple rentals here that cash flow on island. But, talking to local investors in Hawaii, I have noticed a significant portion of that population invest out-of-state for several reasons - mainly price-points (purchases) are lower elsewhere and cash-flow is better. Per other investors, Hawaii is an 'appreciation' market where returns are not centered on CF, but on the appreciation of the property - therefore, flipping tends to be a great strategy here. 

There are some great folks on Bigger Pockets that can probably give you more insight into your questions. Regarding tax advantages, I am pretty sure I'm not the best person to answer that. Maybe a good place to start is to listen to @Lane Kawaoka and his podcast at Simple Passive Cash Flow. He is a smart man. Best of luck to you and your husband. Reach out if you have any questions, I will be more than happy to help. Aloha. 

@Caleb MacDonald

I am not an expert; however, I have dealt with HECO (Hawaiian Electric Co) many times in the past and I believe that if you have a single-family lot, you are only allowed one meter. I don't believe HECO will allow more than that (I could be wrong, but I am fairly confident that zoning dictates the number of meters allowed). If there are multiple meters on a property, it could have been grandfathered in or the lot is zoned more than one-family (single-family) lot. 

I have seen landlords get around this by either paying for the usage itself through the rents or sub-metering and monitoring the usage of each tenant individually and billing them directly. I hope that helps. 

Hi @Eric Wang

I would say it just depends. I rehab my rentals to a certain degree, I know what to rehab and what is more time/cost-efficient to sub out. If you don't have the skill, it will be a steep learning curve, especially if it's a bigger renovation. It can be extremely beneficial, economically-speaking, and incredibly gratifying; however, you might want to look at the opportunity costs. What are you giving up in order to take on the project? Money? Time? Etc? Also, what are the up and downsides of doing the rehabs yourself...

Also, take @Brenda E. advice, it's good to get quality Contractors. I have guys I have worked with over many years, and I can count on them being there when I need them (they fit me in their tight schedule when I call). If you find a good Contractor, hold on to them tight b/c they are worth every penny. They get you out of tight situations.

Lastly, if you decide to take it on yourself, @Account Closed's advice is great too. You might want to act as a General for yourself and sub tasks out. The Quick response is (1) yes rehabbing is great, but with caveats and (2) it all just depends.  

Hi all,

I know this is a general question, but what areas would an out-of-state investor look at to start investing in Texas for multi-family properties (duplex, triplex, small apartment complexes, etc)? Thank you in advance.

@Tristan Colborg 

I like your methodology, I would have done the same or similar. I like to know how things are going to be done and that we are all on the same page, GC and I. In this case, it appears to me that the GC thought it was too much of a hassle to deal with you, with a misperceived conception of your potential working relationship. I might have not said about the 2 other contractors; he didn't need to know about that - it is almost always assumed that you will be entertaining other Contractors.

With new contractors or subs, I like to lead into our first meetings with the idea of building a relationship (because I truly want a relationship with my GC and subs). If they are not seeking such, then maybe re-evaluate your efforts, especially since you're out-of-state, and look upon it as just transactional in nature and grind on. 

Anyway, it was probably for the best on both sides.
 

I like HD for lumber and building materials (I'm in Hawaii, so it's not as cost-effective to get materials at local stores or even Amazon); I prefer Lowe's for finish materials like faucets, appliances, etc. 

Somehow, Lowe's customer service is pretty terrible here, I'm not sure why, but I find HD much more tolerable. It just depends on what your searching for and how close it is to your jobsite at the time. First priority is HD, 2nd is Lowe's, and everyone else after. 

@Benigno Cunanan

I think you might be looking at things a little too rosy here in Hawaii, especially on the island of Oahu (Honolulu)...

You should listen to @Nathan G. and @Lane, they are absolutely right on the $$$ about Hawaii.

I have been using Engage Metro Floor for years and I love it. Sad to hear about the lack of flooring due to the trade wars. I went shopping recently at local flooring supplier and came across Armstrong's Rigid Core and Provenza Flooring. They looked pretty nice and somewhat durable - but I've never tried them myself. I'm always conscious about the sub-floor and it's imperfections, Metro did a pretty good job at smoothing things out (to a degree). Hope that helps.