All Forum Posts by: Patrick Franta

Situated on 2.5 acres of pristine, Haiku land lies 1515 Kaupakalua Rd, a truly unique + exceptional agriculturally-zoned property that boasts two large homes + detached cottage, majestic valley views with its own meadow + river flowing through, and unrivaled potential as an investment opportunity, retreat, or family compound. The first home encompasses ~2200 SF of living space with 3 bedrooms and 2 bathrooms. Thoughtfully cared for, this home exemplifies true, serene Haiku living, with access to a back deck + pathway that takes you to a secluded bamboo forest, enveloped with tropical flowers, and a gentle river. With serenity in mind, this home opens up to 20ft ceilings and a spacious, open-concept Great Room with a fireplace. Enjoy an opulent downstairs master bedroom and a spacious, private lanai that overlooks the valley below.

Perched at the top, lies the second home– surrounded by beautiful tropical foliage, the sleek entry gives way to open-concept living spaces, filled with natural light and equipped with high vaulted ceilings that invite you in. The living room flows seamlessly into the modern kitchen, equipped with contemporary, stainless steel appliances, complemented by dark wood finishes, that give a rustic Hawaiiana vibe. Truly limitless in potential, this home offers an ideal layout with a spacious ~1875 SF 3/2 downstairs, ~1250 SF 3/2 upstairs, a ~250 1/1 attached ohana, adjacent to the main living area. To the left of the primary home, is a ~550 SF detached cottage, offering the perfect space for visiting guests or to serve as an additional rental unit, if one wishes. Finally, the property is complete with a ~500 SF studio + bath, with incredible potential to serve as an art room, yoga studio, or as a rental unit.

To top it all off, the exceptional property is surrounded by an abundance of mature fruit trees such as avocado, lemon, mango, banana, and tangerine to name a few. Moverover, on both sides of the homes are vegetable and herb gardens, as well as a greenhouse. Located in the heart of Haiku, this property is just minutes from North Shore’s best eateries, beaches and just a 30 minute drive to Makawao and Kahului. With exceptional rental history, this property offers a unique and rare opportunity to own a slice of paradise!

View Property Details, here.

Aloha Glenn!  Welcome to the best place on the internet to learn and grow as an RE investor.  I am on Maui also and would be happy to connect anytime to talk shop.  

Aloha @Sarah Parker,

The good news is that were starting to see more inventory coming to the market in the STR segment here in Maui. The bad news is we are still seeing pretty strong buyer demand for the better positioned properties. Now is a great time to get acquainted with the market and define your search parameters so when the deals come available you are ready. Myself and my team work with a lot of STR investors including Brandon Turner and David Greene so I would be happy to give you the overview of how it all breaks down in our market. Feel free to reach out anytime.

Aloha Jack,

Yes, as you can imagine it is a very popular market.  With year-round demand and limited potential for inventory growth its a great place for a solid long term investment.  That being said, cap rates are tight and operating costs can be high here so if your strictly looking for cashflow there are better markets. 

But who doesn't want to own property in Hawaii??!
 

Aloha Lisa, 

I would be happy to grab a coffee and “talk shop” sometime. I work with a lot of investors here so I could fill you in on the latest info. 

Investment Info:

Single-family residence other investment.

Purchase price: $600,000
Cash invested: $400,000

Purchased a Ag zoned 2.3 Acre parcel in Haiku. Built a 2 bed 2 bath 1,000 SF ADU on the parcel. CPR the parcel and plan to sell the CPR ADU and then build the Second farm dwelling of approximately 3,000 SF.

What made you interested in investing in this type of deal?

Strong potential upside

How did you find this deal and how did you negotiate it?

Found the deal through my network. It was a new development not available to the public so I was able to reserve a lot before it was released.

How did you finance this deal?

Vacant land financing that was converted to construction financing that was then refinanced into a 30 year fixed.

How did you add value to the deal?

Built a house on the lot. Then CPR'd the lot into 2 parcels. In Maui this is sort of a way to subdivide without actually being abel to subdivide.

What was the outcome?

Added significant value

Lessons learned? Challenges?

I have learned a lot throughout this multi year process. From land acquisition to the new construction process to the CPR process, it was all a learning experience.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes happy to make reccomendations.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $450,000
Cash invested: $50,000

Bought and rehabbed a duplex in Makawao. Refinanced after the rehab to pull equity out. Currently generating $5,000/month with a $2,500 net positive cashflow.

What made you interested in investing in this type of deal?

Hawaii small Multi deals generally offer great cashflow

How did you find this deal and how did you negotiate it?

Found the deal through my network and negotiated directly with the seller

How did you finance this deal?

Conventional financing

How did you add value to the deal?

Renovated both units. Updated kitchen, bathrooms, paint, flooring, landscaping etc.

What was the outcome?

Added significant value and refinanced to pull out capital.

Lessons learned? Challenges?

Renovations always take longer and cost more than expected

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes happy to refer.

Hey Patrick,

There is actually going to be a meetup next week on the 21st at Maui Brewing in Kihei from 4-6.  That would be a good place to meet other local investors.  

If you have any questions about getting into this market please don't hesitate to reach out!

@Mike Neubauer is also a wealth of knowledge!

Aloha @Aileen B.

Please note that in Hawaii you are required to have an Island contact for your guests.  A lot of times people pay their cleaner extra for this service.  The guests can still reach out to you directly for any issues but technically there has to be someone available that can get to the property within 1 hr if necessary.  

I have many clients that self manage in Maui, the key as a great cleaner and a good handyman.   

Aloha @Adam Johnson,

I have clients that are in the process right now.  At this point it still seems like a bit of grey area as far as how the county is handling it.  The main hurdles are having the sufficient capacity with utilities (water, sewer, electric) off-street parking, appropriate setbacks, and fire mitigation (if you have 3 units you are likely going to be required to have one of them sprinkled).  Another nuance is that on Rural .5 acre parcels the state and county entitlements are different.  The state says you can only have 1 Ohana but the County says you can have 2 - per the bill.  I am interested to see how that progresses as Rural parcels offer the most opportunity to take advantage of this legislation.  

As my clients get farther along in the process I will have more info.  I will keep you posted.