All Forum Posts by: David Rucker

@J Jacqueline    Welcome to BP.

@Mayur Chaudhari

I agree with the other advice. Insurance cost is a huge problem here for all Associations. Natural disasters and requirements for 100% hurricane coverage have had a dramatic impact on HOA's insurance costs, and also affect Buyers due to lending requirements. Even the projects that do not have 100% hurricane coverage are dealing with significant increases in their insurance coverage. For example, if you look at listings for condos now, you will see a number of them using "100% hurricane insurance" as a selling point. I've attended a couple of forums on the insurance issues, and my take away is that no one knows when it's going to ease up.

@Rocco Nicoletta

My wife and I have done 2-3 flips/year on Oahu since 2020 (yes, we started in what turned out to be the start of a pandemic....).  DM me and we can talk.

@Gerren Castle

Message me and I'll tell you about what I'm looking for.

thanks

I used Conventus (cvlending.com) out here without an issue.   I also got an email this morning from Pacific Home Loans promoting a 25% down Condotel loan program if that moves the needle for your project.    

@Chelsea Lingenfelter

As a bunch of folks have suggested already, invest in some killer photos.    Before that, however, look for some ways to brighten up some of the rooms with some color.  Even a small colorful pillow, wall decoration, etc. can help.   I have noticed that the stagers we use consistently do this and it can help make the pictures pop.    Also look at your lighting "color temperature".  Either make it consistently throughout or set it up for each room.  I am no expert, but you can find ideas online like this  https://healthlighting.com/blo...    Compare some of those photos to your listing photos.    

-Why are you using "Carbon Ave" in the name?    I know nothing about your area, so Carbon Avenue means nothing to me for example. But if a stranger to your area is your target market, the name may  make me them want to click on your listing.    Is it centrally located to great shops, bars and restaurants?  Is it in a quiet family part of town?  Are you close to major employers like a hospital where a traveling nurse might work?     If there is a way to highlight something in the title versus making me dive down into the listing to see where it is, you may want to consider that. For example,  "Cozy Carriage House Close to Everything" or whatever makes sense to you and your target market

Best of luck!

Hi @Elin Trinh

There are several things to watch out for with lease hold properties that affect your numbers including things like renegotiation dates and lease term. The latter will also negatively affect property value as you get closer to the end of the lease, which and be difficult to model.     All of these lease  items are required to be disclosed to you as the Buyer, and you have time to review during your due diligence period (there's a standard form in the Hawaii purchase contract for this).        If you want to talk more just DM me.

@Scott Wolf 

I've used Jeremy Grad for a couple of things.   However, I do not know if they are familiar with your specific question.   https://www.gradlaw.com/

@David Kirk

Congratulations on being in the position to have some options for your real estate.    Well done.    In addition to the questions that Doug laid out I ask folks if they are planning to move back to Hawaii.  If that answer is no, that may favor selling, particularly if you desire to invest at your next destination.  

Note that if you do keep the property, you will need to have a local agent for your tenants that is on the same island as the property.    A good PM would also be my recommendation.

@Corey Cawthron

My thought is to proceed cautiously, on both fronts. Leasehold properties appear attractive from a purchase price standpoint, but you are purchasing an asset that is likely to decline in value, and you also have no control over future increases in the lease rent. Second, STR rules are set to change in 2023 to 90 day minimum for properties that are not in just a few defined zones (think resort areas basically). There is a legal challenge pending, and it is difficult to predict what would happen here.

Depending on your budget, you might be able to purchase a legal STR that you could use from time to time, break-even or better, and have an appreciating asset.

DM me if you would like to talk about this.