8 Replies

Hi Everyone,

I live in Hawaii on the island of Oahu and i do not own a home yet but i would like to purchase one. I don't have much money and i am really not to familiar with even purchasing a home but i would like to purchase one fix it up and rent it out but im not sure if i should do that here in hawaii or in another state. If anyone has and suggestions, tips or knowledge to share i would greatly appreciate it.


I believe everyone starting out should start near home with in driving distance. You will learn so much the first couple of years and you need to be there to learn. Think about buying a condo on the west side and rent it out as a vacation rental. There is a lot of money to be made here on Oahu.

Thank You


aloha David,

Let me know how I can help.  I would suggest getting preapproved with a lender unless you have the cash to buy.  Need to know how much you can afford to buy before one actually buys something.  I looked out of state before and had quite a few mentors talk me out of it which I am thankful they did.  If you do go out of state because deals makes more sense, you need to find pay team of people on the ground that you can trust whether that be a property manager, home inspector, maintenance person, etc.

Oahu is a good place to start imho

Buy yourself a home first. Wait for it to appreciate. Get a HELOC. Then get into the fix and flip.

Remember, you can earn up to $250k tax-free just selling your own home vs. capital gains based upon your income for flipping. I know investors who forego the flip and simply improve and then resell their own homes every three years to take advantage of the primaryresidence capital gain exemption. Better terms lower risk.

David, First thing you need to do is go talk to some lenders, and get pre-approved for a mortgage. Make sure your credit is looking good, and that your debts are small. They will consider your debt to income ratio as a huge factor on how much they will lend you. So if you have a $500 car payment for example, and $300 minimum Credit card payments.... even though everything is paid flawlessly. That could screw up your DTI depending on how much your income is. I personally got rid of all my liabilities and debts. I'd rather drive a used car I paid cash for, then to screw up my DTI and not be able to get funding. Hope this helps! Also hit me up I have a mortgage broker I could refer you to.

Aloha @David Pagan , Big Island is much more affordable. My cousin recently bought a house in Kapolei for $750K and it was a really nice house. Then I showed him what I was building on the Big Island and he couldn't believe it. For a bigger house on an acre of land, you can purchase it for $250-$275K. Just something to consider. Oahu's prices are crazy!

Key to buying in Hawaii, is to buy financially, not emotionally.

We call it Mai Tai fever... the islands have a way of doing that to investors, seen them buy properties that have a ROI that they would never buy on the mainland.


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