What Area of REI Did You Get Started In Here In Hawaii?

[Jason Pasion]

Aloha!  I'm interested in buy and holding here in Hawaii but am not quite sure this would be the best option because of the prices. 

What area in REI did you get started in here in Hawaii?

Jason

[Michael Mazzella]

Aloha from Hawaii Kai, @Jason Pasion!

I've always viewed the "lifetime passive income" thing as more of an end-game. ...and doing wealth creation (flipping, appreciation-type deals) is to me, a good way to create the liquid cash to later invest into those income-producing properties.

Oahu is a great market for wealth creation, so I take advantage of that. With only 1 exception, every house flip I've done in the past 24 months has netted a 6-figure profit. At this very moment, I've got 10 house flips in progress, with $1.3m in profits in the pipeline. That's not even a full year's worth of deals, but rather about 9 months to cycle through and get paid on all of these. So, we're on a trajectory to do $1.5m in the next 12 months (pre-tax), which brings me to my next point...

Last year, I took $1.5m and started buying up cash flowing properties in FL. Currently they are all renovated and tenanted, and produce a NOI of about $22k per month. The FL market I chose, and moreso, the segment within that market, supports cash flow really nicely, while still giving me enough market appreciation and increasing equity that I can also flip the portfolio if I wanted to, and make a substantial profit.

So a big key for me has been to look at the market first, rather than lead with a strategy first, and try to force a strategy into a market that does not support it well. The Honolulu metro is a weak market for cashflow, and a tremendous market for wealth creation. 

You're asking the right questions. All the best to you in your REI adventures, Jason!

~Michael