All Forum Posts by: Sumner Rabin

Can you share which areas those may be? 

My wife and I are desiring to buy a property on either Oahu or Kauai that will be an Airbnb. We currently have a good cash flowing rental in the same town we live in and would be able to drop around 100-140k as a down payment (or 25%) thru pulling cash out on said rental.  

Our preference is to Kauai as it’s just beautiful and more “exclusive” (homes in princeville specifically!)
I suspect Oahu to be a more difficult market to succeed in due to the sheer number of air bnb and hotels by comparison. Add in steep hoa and possible hoa restrictions. 

for those who have made investments in either location, what do I need to consider besides profitability that may be a deal breaker? Example- Florida has flood and hurricane issues which insurance premiums can run high. 

Is demand strong enough in Hawaii to sustain long distance air bnb operations?  

What if my business mindset was to not have an Abb, but an LTR instead? Oahu has a strong military presence- how much is rental vs ownership?

@melissa Jolley. I agree on all fronts. how long are you seeing Properties stay available as a rental before signing to a tenant?

 Those are terrific and thank you for your input. I do agree, a lot of people are tired of shoveling snow and as they get established, the idea of returning to former hometown looks lesser and less likely. I know I got tired of winter after 11 years of it in Chicago.

Hi Everyone,

I am very close to submitting an offer on some properties in the VERY near future, but I would like to hear more from you who may already invest in the region what else to look for.

I found some possible homes that are:

- Not next to a water source (lake etc.)
- Not low elevation
- Not at the lower end of an elevation change (i.e "down the hill from...")

I have been to the area several times as of late and feel familiar enough to make a purchase, but, I cannot get a grasp on what I will become liable for once purchase is done. To be specific. I am an OOS investor. in California I will NOT reside in this house except for maybe the couple nights I stay in town setting up property management needs etc.. 

I am wondering what I need to look for with insurance, tax filings and other "Gee. I wish I knew that when..." type stuff. 

The homes range in price from 250 to 350k. One, even new construction.

Thanks to you all.

I am looking to buy a Condo or SFH in Florida. Eastern seaboard. I am not opposed to the Miami-Dade or Greater Orlando region. Ultimately, as long as it cash-flows- RIGHT? LOL

I currently have a cash flowing property here in California, but the price points and wars here are making it a non-profitable business model for me. So, until conditions for me change, I am ok with one property here. 

I am very familiar with Florida as I go there for work upward of 10-12x/year for multiple days on end. 

What is it about Florida that is driving the incredible demand? I get it that the weather and costs of living are better than say, Minneapolis. I grew up around hurricanes so I am familiar with the need for higher elevation, flood insurance and such. But what I am not understanding is this:

- What is driving the demand to Florida

- How long is this demand going to be sustained

- Are we destined for another 2008 crash like Florida had

And, most importantly. Why would someone rent from you or me if owning a a home is only a little bit more than rent. 

(example, a 350k home is maybe 1700/mo give or take. I can rent for 1400 or own for a few hundred more? )

I am looking to network with Florida investors and landlords. 

Thanks for your time, look forward to doing some business!

A hotel provides a consistent experience more often than not. In addition to loyalty rewards if you so choose to gain them.

Airbnb is honestly a risk. Sure, it may give you a more authentic experience. But you are relying fully on a complete stranger having provided a product for you and internet randoms saying their views on Airbnb.

I have NEVER had a great Airbnb. I've had them where the owner controlled the AC and would not turn it on in Palm Springs on a 120 degree day. And, I've had a coffee maker catch on fire when I plugged it in in Phoenix. 

Hotels may seem very 'cookie cutter'. But, I always know what I get.

Thank you for the feed back. It’s reassuring to hear optimism on the CA market. 

The home does cash flow about $1,700/mo. Rents at $2,500. 

I will do some reviews of various cash out scenarios to see how best it can be utilized towards another property.

Hi Everyone,

I have a rental unit obtain thru inheritance here in Southern California with a "zillow" estimated value of 500k. The home is fully paid off and has been a rental unit for the family member we inherited it from for years. We will continue to keep it a rental indefinitely.

I have a few scenarios I am exploring to maximize this opportunity:

1) Pull some cash out for a down payment and buy a property in my town here in SoCal and make that a rental unit as well

or...

2) Pull cash out to buy a property out of state. I have been looking around Phoenix, Daytona Beach, FL and Atlanta. Even exploring college towns.

I am not committed to a SFH, condo, townhouse. I am committed to what would be a good starting point. Hence my wide focus. I also do not necessarily want to go big with a 100k down payment here in SoCal where in a lower COL area the 20% down could be 1/5th my expense. Is that thought process wrong?

Any suggestions on how I can safely take this opportunity given to me and flip it into the start of a cash flow business?

Thank you all!