All Forum Posts by: Shane Fujimoto

Quote from @Mike Eng:

That seems awful cheap for Oahu. Is this is a lease hold property? I keep looking for fee simple properties in Oahu (condos mostly) but not sure renting it out could cover both the mortgage and HOA dues.

Hey @Mike Eng, this was for a fee simple. I totally understand your concerns about rent covering all expenses - especially for that area that the unit is in. I was following a rental ad in my MLS for the exact unit asking 2k per month. On July 29th the unit got the 2k that they were asking for. I immediately setup a showing for August 1, put in my offer on August 2nd later in the evening only to find out the deal just went into escrow. Bummers!! I'll keep trying - now knowing I'll have to pull the trigger a lot quicker. 

I appreciate the info. Definitely worth considering. Thanks for your help!!

Aloha all!! Last year my wife and I did a cash out refi on our primary residence, and removed my name from title, which gave us 400k. I used that 400k on a downpayment for me as a primary residence on a 863k home which I will be renting out after the seasoning period (both homes will be placed in a trust). I recently took out a HELOC on my primary residence for 400k and used 100k for PML at 12% interest, and payed taxes. I have about 250k to use on an investment property which is listed for 175k, a townhome on the westside of Oahu. This townhome will cash flow about $700 after paying interest on my HELOC for the 175k. The reason I'm thinking of using my HELOC to fund the entire purchase is that I can make a cash offer and close on this deal quicker but also make my offer more attractive - its pretty competitive here in Hawaii. My question is should I use my HELOC to fund the whole investment property or do a DSCR loan and put down 20 to 25%? The problem with that would be time consuming. I will later do either a cash out refi or a new HELOC to pay off the original HELOC. Any feedback, ideas and suggestions would be much appreciated as I'm new to this game.

Mahalo,

Shane

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $863,000
Cash invested: $475,000

I'm owner occupied for a year then plan to rent out the home. I have another home in Mililani under my wife's name. I put this Kapolei home under my name as primary residence, took out a HELOC of 400k and plan to use that money to invest in at least single family but prefer finding a good deal on a Multi Family Property.

What made you interested in investing in this type of deal?

I always wanted to invest in another property and the interest rates were insanely low and I had to take advantage of that.

How did you find this deal and how did you negotiate it?

I found this deal through my local MLS. I setup and automated email to myself with the criteria I was looking for.

How did you finance this deal?

I financed this deal through a local bank at 2.875%.

How did you add value to the deal?

I didn't have to do anything to this home. It's in a good desirable location and the market is hot in this area. The value has gone up by 80k in just a little less than a year.

What was the outcome?

The outcome was great!

Lessons learned? Challenges?

I wish I started earlier. It was challenging because I was purchasing during a time when everyone was bidding way over asking. The home was listed at 840k and I submitted a strong offer with a attractive terms and a large downpayment that help solidify my offer.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'm a new agent and I did the deal myself.