All Forum Posts by: Michael Borger

What's the cost? Is it all permitted/within zoning?

I'm fairly certain the law requires you to have an on-island representative, even if you'll be doing the majority of the management from CA.

Aloha, @Ilayda Elmas - welcome to BP and the Hawaii scene. I've been doing deals in Hawaii for about 12 years or so now. It's a mixed bag -- good for flips but can be tough for long-term holds given the normal holding cost vs incoming rent. A lot of people invest elsewhere. There is some good education here on BP for getting started -- how to build a basic marketing campaign, how to speak with sellers, run numbers, get your financing together, etc. The main thing is to get started. Sending out your first batch of letters can be exciting and scary for many people, but do it anyway. Good luck!

I do a fair amount of deals (rehabs, holds) in Anchorage and the valley. It's no different than anywhere else. Hustle, have systems, know what's a deal and what isn't, work with good people, etc.

No, I haven't and doubt I would. Is your cash flow over the years of your ownership going to make up for the purchase price itself? Maybe you could make this work as a cash flow play for a short time, but you have to be sure to sell it while it's still sellable and to counter any cash flow you get against the accumulated loss of market value for the duration of your ownership.

Hi Trent - Anchorage and the valley are my second market. I always have a mix of flips and rentals going on (LTR, MTR, STR). I tend to be more active in Wasilla than Anchorage, but I'm open to anything.

Feel free to hit me up.

Alaska and Hawaii are my two markets. I bought a house in Waianae a few years ago from a lady who moved to Anchorage. I then bought the house in Anchorage when she wanted to move back to Hawaii. Both profitable flips.

I keep things simple -- quality paint (Benjamin Moore), quartz counters, stainless appliances. Something like Moen Lindor brushed nickel shower fixtures. Some people may go higher end, but naturally it depends on the property and neighborhood. You can always add some bells and whistles here and there. Most of my projects are regular SFHs, so I make them appealing to the majority of the typical buyer pool. Others may do differently.

Hi Rocco -- I've been doing flips in Hawaii for about 10 years or so now. I no longer live on island but have a team that handles things for me as needed. Good luck starting your new venture.

As you indicated yourself, it's mostly throwing away money because you have nothing left at the end of the lease. It's a steady march to zero. That being said, I've flipped leasehold condos before- both by keeping them as leaseholds and by buying out the fee. But you're talking about keeping it yourself, which is a different analysis. Still, I think you'd find it difficult to find one that would be a good long-term investment unless you had another ~20-30 years to go, it's at least cash neutral, and you don't plan to hold it too long (to avoid too much investment loss and before you get to the point where it's unsellable because of too few years left); that's another way of saying that maybe it suits your cash needs in the near-term or is at least less of a pill to swallow than other options until you find something that's more of a sensible long-term play