All Forum Posts by: Isi Nau

Hey @Christian Cody not sure what sources are available in PA, but over here there are several MLS-based websites that provide a pretty healthy amount of data that are pretty much as good as having full access to MLS. All the best!

Hey @Zasha Smith

Good job saving up $140k!

Sounds like a great buy. If that house is still available I would get it under contract as soon as possible as a primary residence and then figure out the details in the coming weeks/months. I would put the the smallest downpayment allowed. If the home is in a USDA area even better, which would allow $0 down and your monthly payment would be $2000.

Here's some quick input on the scenarios you presented.  Let's run each scenario for 12 months.

1.  Flip right away.  The biggest factor is the cost of the remodel.  All other costs will be pretty set.  Let's assume you could make $80k (pre-tax).  In the mean time still paying rent of $2200, over 12 months that's $26,500 (rounded).  Giving you a net gain of $53,500 (pre-tax).

2. BRRRR. Again the biggest factor is the remodel cost, also taking into consideration all closings costs for the purchase and refi. Let's assume you'd be all in at $510k. With an ARV of $625k, you could refi 75% LTV, or $470k, which is less than the $510k you have into it. If you could refi at 80% LTV that would get you pretty close to pulling all your money out of the home. But you would then be cash flow negative by about $200 a month. Including your own rent of $2200 ($26,500 a year) that would be close to a combined $30k loss for the year.

3. Rent for a year then sell.  Assuming similar numbers provided in Option 1 and 2, as well as 3% appreciation for the year; rental income would be positive $2500 for the year, equity of $130k (assuming $0 downpayment and considering remodel costs), all closing costs of $45k, and your rent of $26,500.  Your net gain would be $61k.  Slightly better than Option 1.

4. Live-in fip.  The final outcome be very similar to Option 3.

I don't think Option 2 is much of an option.

Options 1, 3, and 4 are all similar.  The big difference is taxes.  I don't know your tax liability, but some generic assumptions are Option 1 would be 50%, Option 3 would be 15%, and Option 4 would be 0%.

Some of my numbers might be a little off.  I kind of jammed through it.  But they are probably pretty close.  Let me know if you have any questions.

Hey @Account Closed

I have driven a Honda Accord for the past 22 years.  Not the same one, but close enough.  To put it into perspective, on my last visit to my mechanic he gave me a shirt (he had a bunch made with the company name and logo).  It's actually a pretty nice shirt.  He said I could have it for free since I am his number one customer.  Hahahaha!  Last year I finally purchased a Honda that will keep me out of his shop for a while.

Hi @Zasha Smith You can do it!  All too often people in Hawaii say it isn't possible to make it or get ahead here.  It's hard, but it isn't impossible.

I was talking to my wife the other day about the scenario in the original post.  If we moved two more times we could be mortgage free with close to a million dollars in equity!  Not too bad for a "side hustle".   :)   I forgot to mention in my post that none of our moves took us out of Mililani, which means we didn't have to move schools, leave friends, etc.  But my wife told me if we have to move again we are hiring movers.  Non-negotiable.  Hahaha.

Hey @Jeremy Moncur

Great property!  I remember seeing this one when it first came up.  Definitely unique.  A few quick thoughts:

-selling the units individually would not yield as high of a return.  I would assume they'd sell in the low to mid $400s.  Also it would be a lot more work for the seller.

-selling as an owner-occupant property would be tough since it's not on the water or across the street, which I think would be necessary in order to justify the price.  Also the configuration doesn't look like it would work.

-I think the best option is to sell it as it currently is.

-I'm not overly concerned with how long it's been on the market.  There are relatively few sales in that area and homes over $1m sit for 6 months or longer.  Most local families in the area can't afford a $1m+ home, so you'll have to wait for someone from the mainland to come in.

-The property is unique.  With few buyers in the area as it is, the uniqueness of the property will only add to the time on the market.

-The numbers from an investment standpoint seem ok.  But it's a tough area for that size of an investment.  You may have to adjust the price to reflect a cap rate similar to areas on the Westside.

-I'd try and market the home in nearby areas with high Mormon populations.  Utah, Southern California, Arizona.  Someone there may want to pick it up as an investment and a place to stay when they visit.

Overall I think the biggest obstacles are not being on the water and not being able to be used as a single-family home.  Based on this I think the price will need to be reduced.

Hang in there.  That'll be a nice property to have under your belt!

Hey @Trenton Zimmerman

If you're able to come to Mililani, I am happy to help where I can. 

We currently own 13 units on Oahu.  Condos to multifamily.

Hey Craig.  I'd recommend using a management company in Waikiki.

There are a bunch of options here.  Depending on how much hand holding/interaction your parents are looking for.  If they don't need much, then Jeffery Samuels is a great option.  He charges a straight up 10% fee.  No hidden fees or surprises.

Hey @Vinci S. sounds fun!  I am always happy to meet up.  

Koa Ridge!  The "next move" for every person in Central Oahu.  Since it is in our backyard we have a large number of clients waiting for it to open up.  It took forever, but has finally cleared all the hurdles for approval.

We have advised our clients to not get too excited about the affordable units.  People are often surprised by what the C&C qualifies as affordable.  But something is better than nothing.

For market rate units, I would assume Koa Ridge will be to Mauka, what Mauka was to Mililani Town.  Prices in Koa Ridge will definitely be higher than Mauka.  New homes, small lots, high prices.

As for buying/investing there I think it will have to be a long term play.  I assume a lot of the same regulations we saw in Mauka and Ewa (new home builds) will be used at Koa Ridge.  Things like owner occupancy, length of ownership and occupancy, penalties for selling, etc.  I am bullish on Koa Ridge.  As long as you have a viable exit strategy.  Last I checked, some of these key details hadn't been released yet by Castle and Cooke.

Your post has intrigued me!  If your opportunity pans out, let me know.

Hey @Junior Matthews

Appreciation in Hawaii overcomes a lot of bumps along the investing road, but vacant properties are pretty big bumps.  Local economists are projecting 2 - 3.5% appreciation over the next 3 years.  I'll assume the property is worth $700k, and your mortgage is $600k (easy numbers to work with) and the property will remain vacant.  In order to break even, prices would have to appreciate 5% a year.  I have not seen any of the local economists release any projections near that figure.

If the property is rented, the numbers look a lot better.  I'd assume when rented, the cash flow is slightly negative each month.  That is a bump in the road that Hawaii appreciation can overcome.

Overall, if you're set on staying in Hawaii, I'd recommend renting out the current home as soon as possible, or selling it and buying something else.  We have helped a number of our clients get into investment properties in Hawaii with as little as $40k-$50k down that cash flow and realize good appreciation.