All Forum Posts by: Isi Nau

I am running the numbers to compare a rental here versus Indiana. Big differences in cash flow and appreciation. For example, here:

-pre-recession (2003-2008) prices rose 100%

-recession (2008-2011) prices dropped 20%

-post-recession (2011-2017) prices have risen 65%

A $150k condo in 2003 is now worth $400k, which averages out to almost $18k a year. Current cash flow (assuming 20% down when originally purchased) would be about $7k a year.

*the last piece of the puzzle for my calculations is appreciation rates/values in Indiana. Long-term or short-term. Any help is appreciated as I consider personal and client strategic plans.

Thank you @Al Perez.  No problem.

I am running the numbers to compare a rental here versus Ohio.  Big differences in cash flow and appreciation.  For example, here:

-pre-recession (2003-2008) prices rose 100%

-recession (2008-2011) prices dropped 20%

-post-recession (2011-2017) prices have risen 65%

A $150k condo in 2003 is now worth $400k, which averages out to almost $18k a year.  Current cash flow (assuming 20% down when originally purchased) would be about $7k a year.

*the last piece of the puzzle for my calculations is appreciation rates/values in Ohio.  Long-term or short-term.  Any help is appreciated as I consider personal and client strategic plans.

I am wanting to learn more about appreciation in Indiana.

In your city, what is the lowest priced 3 bedroom SFH you've seen sell recently (move-in condition)? How much would that house have sold for at the bottom of the last recession (move-in condition)?

Thanks!

I am wanting to learn more about appreciation in Ohio.

In your city, what is the lowest priced 3 bedroom SFH you've seen sell recently (move-in condition)? How much would that house have sold for at the bottom of the last recession (move-in condition)?

Thanks!

Hi @Account Closed

I am way late to this conversation, but am wondering if you were able to find any answers to your question?  I have the same question.  Thanks!

Aloha All.  Just wanted to provide a quick update: http://www.staradvertiser.com/2017/03/01/hawaii-ne...

-The bottom four tax groups have been removed

-Only properties valued at or above $2 million will be taxed

-The tax only applies to the second (or more) investment properties

Basically, an individual would have to own two or more $2 million+ properties (residential) in order for this tax to effect them.  I would imagine this would apply to a very small number of property owners on Oahu or Hawaii in general.

On page 5 of the SB686 it provides wording to include apartment buildings, which was unclear in the original bill.

The bill still has a few more steps to go through, but I would imagine that if it passes it will pass as is or will be further reduced in scope.

Howzit @Laine Furukawa

That’s awesome you’ll be moving back home.

As far as local banks with portfolio loans, Bank of Hawaii and Central Pacific have done well for me and my clients. Some of the credit unions have as well (Navy Federal and Hawaii State).

For the Brrr strategy, it is definitely possible on Oahu. I saw one last week. You could probably do it for $50k, but it would be cutting it close. Not sure what your goal is as far as cash flow, but this one would cash flow about $200 a month.

Aloha

Aloha @Vince Gethings

That's exciting you'll be coming to Hawaii.

For a good commute (less traffic), you'll have to live East of HAFB. For a duplex, you'll have to live West of HAFB. Most duplexes will be more than 45 minutes away on a typical day. A value-add SFH would definitely open your options as far as being close to work and in a good school.

Good public high schools within your drive-time criteria are Mililani and Moanalua. Value add homes (3 bed) in Mililani will be about $600k and in Moanalua they’ll be about $800k.

Not sure if BP will let me put the actual website, but the best one by far is Oahu RE. It will have more than what you need to make a good decision.

Most duplexes will be in the Ewa Beach or Waianae areas. Most will be 2 beds each side, prices begin around $450k. Not very many are bigger than 2 beds each side. Some duplexes are in/around Honolulu, but will be run closer to $1 mil.

Most multifamily properties 4 units and under are $1.2 mil+. Properties under this amount will be in the Waianae area.

As for cap rates on Oahu, 4-5% is pretty common. 7% is a good buy here.

Hi Lorna.  I'll send you message.