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.
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! I'm an Army officer headed to Oahu, Hawaii. Looking to buy home with the goal of turning it into a vacation rental in a few years when I return to the mainland. Your recommendations are very much appreciated.
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.
You asked a really general question and got a lot of subjective advice. Just saying.
This post has been removed.
@David Pagan Welcome to BP! Haven't known anyone to actually but a home in Hawaii but have known others to buy condos. You may need to research the areas and be aware of any disasters in the past due to the weather. Good luck!
@David Pagan Hawaii is a primary market where the rent to value ratios don’t make sense and if you think you are being the pace of inflation you are wrong.
Invest instead and don’t be like everyone with a false sense of security who hope and pray that their home is their biggest asset. If you must make sure you buy with the lease down payment.
I have an investment opportunity here on Maui that I need help to secure if anyone is interested in a potential partnership on a deal. I need to raise funds to make it happen, but basically there are two high end properties in the nicest and newest neighborhood on Maui that were foreclosured, auctioned, and have no bidders. The confirmation is in about a month (which is the last chance to buy them before they become REO and get listed on MLS for market value) so I don't have a lot of time. I have purchased an investment property through the court auction on Maui and am familiar with the process.
I could potentially acquire a $950k market value condo for $550k and/or a $1.5M home for $850k. I'm open to just flipping them or holding them for cashflow. We could acquire either one or both, they are being sold separately but owned by the same bank.
Because of the high potential upside I am looking for outside funds to join me, I don't want to miss the deal of the year on Maui! If anyone is interested please PM or email me. I'm glad to answer any questions and provide references to anyone that might consider working with me.
Aloha @Greg Gaudet ! I may be interested. I would like some additional information if you want to dm me. Talk to you soon.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing