All Forum Posts by: Michael Borger

@Katrina Cabral Hello. It looks like, per the tax record, you only have a leasehold interest in the property; you don't own the fee. That will drive a lot of potential buyers away since a leasehold interest is a depreciating asset (it's a march toward zero), and your combined maintenance fees plus lease rents are over $3700/month, all while the lease expires in 2034 and average STR for the building are only $100-$200/night.

Hi @Eric De Gruchy - my partners and I at Cash Flow Society are expanding into Alabama right now and are working on multiple deals in the northern part of the state. We can help out in Decatur and will have a few options for you (we're not a one-trick-pony cash 'take it or leave it' shop).

I'll reach out to you on DM, so please look for it there and we can get an idea of what you need to get done and how we can help out.

Thanks,

Mike

Your seller finance would have to be at an extremely high interest rate to make it worth someone else's 1.7M to be in the middle -- I wouldn't count on someone doing that. You would be negative on the months of the lower end of rents you stated. A lease option or agreement of sale will be your best bet.

Aloha, @Kiana Aalona - congrats on starting your REI journey. I've been flipping houses in Hawaii for about a decade now, even though I moved away years ago. It's mainly a marketing business, so focus on understanding marketing, deal strategies, and running comps before you get into the less important aspects like paint colors and flooring styles. Good luck!

Can you define "investment properties"? That means different things to everyone.

Aloha, @Benjamin Hartiens - as you can tell, most investing is focused on flips. I have about 10 in various stages at the moment from CPRs and new build to carryback sub-2s and short sales. It's a different business entirely than STRs, but it's a way to make money in the islands. You just have to be ok with active income there and passive somewhere else (broadly speaking).

@William Kerkau The Kailua house I just made work with the built-in equity I negotiated and the ability to rent floors separately for the short-term (not STR) as well as the seller finance portion @ 0%. Sometimes you have to get very creative, but I always take a reverse-engineering approach to putting deals together -- figure out what the seller needs and then find the right tool(s) [strategies] for the job.

Hi William. I've been investing in Hawaii for about 10 years now - mostly all flips, a few wholesales here and there, more recently some novations where the opportunity presents itself. I keep my eyes open for creative holding structures like sub-2s, lease options, owner wraps, but those are fewer and further between. My projects right now are a sub-2 + owner finance hold in Kailua out to some CPRs in Makaha and some in between, including a short sale flip in Waipahu and a new build downtown.

It's mostly about being opportunistic and understanding different strategies so that you have multiple tools in the toolbelt.

Ken Lau just did an eviction for me last month in Halawa. :) 

Aloha, @Desiray Coulter - I mostly flip houses in Hawaii; because the price points are so far above rents, it's very difficult to find something to rent out for positive cash flow. You're likely better off looking to the mainland if cash flow is your primary focus.