ALOHA! Big island real-estate

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ALOHA! Big island real-estate

Dillan Stoor
Member since 2021 · 30 posts · 15 votes

My name in Dillan Stoor And I have somewhat successfully started my real estate investment business in southern Utah. Business is booming here as I work in remodels and repairs while supplementing my investment properties. I have previously resided on the big island in Hawaii and on Oahu and would like to increase my portfolio on the big Island. I am somewhat familiar with the area but I’m blind as far as the market analysis goes and insider info. Looking for people that are on the island or investors that would like to go in on some buy-and-hold multi family and possibly vacation rental properties.I am extremely talented in fixes and flips as that is the nature of my business and plan to provide much of my on labor from my business which I would move to Hawaii during my time of acquisition.

I plan to visit the area in March and hopefully I can acquire a property to move out there shortly after as my wife is expecting at the end of the summer.

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Alipate Moleni
Rental Property Investor · Keaau, HI · Member since 2019 · 55 posts · 33 votes
5y

@Dillan Stoor I reside here in Puna (HPP, Keaau). I Just purchased 2 SFR rentals here last year. I Also own an SFR rental in Orem, UT, which is where I moved from 6 years ago. I don't have much REI experience and have even less experience with rehab. I am currently looking for land deals to develop or rehab deals to BRRRR or flip here in Puna. I do know the area pretty well so if you have any questions about it let me know.

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  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    5y

    @Gary Ahu

    0Reply
  • Arla C. MeyerPro Member
    Investor · Hilo, HI · Member since 2016 · 19 posts · 7 votes
    5y

    Aloha, Dillan,

    You should join the Big Island Real Estate Investors Group. We meet by ZOOM at the moment, at 6:00 Hawaii time the first Wednesday of each month.

    There are flippers, long-term holders, hard money lenders, realtors, etc. in the group.  Contact Roy Dolwett to get on his email invitation list:

    Roy Email Signature.png808-430-3223


    Also contact me when you get to Hilo!  Arla

    0Reply
  • Alipate Moleni
    Rental Property Investor · Keaau, HI · Member since 2019 · 55 posts · 33 votes
    5y

    @Dillan Stoor I reside here in Puna (HPP, Keaau). I Just purchased 2 SFR rentals here last year. I Also own an SFR rental in Orem, UT, which is where I moved from 6 years ago. I don't have much REI experience and have even less experience with rehab. I am currently looking for land deals to develop or rehab deals to BRRRR or flip here in Puna. I do know the area pretty well so if you have any questions about it let me know.

    4Reply
  • Dillan Stoor
    OP
    Member since 2021 · 30 posts · 15 votes
    5y

    @Alipate moleni. We will surely have to get together. Hoping to house hack initially and BRRR several properties, I have experience doing both and am very capable in the remodeling phase of both. Almost sounds like we have what there other needs. I hope to visit the Island in March and would love to meet up as many of the properties I am looking at are in the HPP area because of price as well as demand.

    2Reply
  • Dillan Stoor
    OP
    Member since 2021 · 30 posts · 15 votes
    5y

    @Arla C. Meyer That is extremely helpful and I will surely be in contact as well as try to get in on the zoom meeting next month!

    0Reply
  • Dennis RochaPro Member
    Rental Property Investor · Big Island Hawaii · Member since 2020 · 9 posts · 4 votes
    5y

    Aloha Dillan, 

    My wife Rima and I also reside in Keaau/Puna and we have a rental property out in the Ainaloa subdivision, the Pahoa area. Like Arla, we try to attend meetings with the Big Island Real Estate Investing group once a month. We also recommend that you join in the meetings if possible. Good luck to you and all of us as we move forward with investing and networking to improve/create resources and simply help each other out. Contact us if you wish and we'll be glad to help if we can.  

    0Reply
  • Michael H.
    Member since 2021 · 2 posts · 0 votes
    5y

    Hello fellow Big Islanders - Good to see there is a community here to network and talk story with regarding real estate investing. Thanks for the tip of contacting Roy to join the real estate investors meetup group.

    I'm wondering if any of you have experience with "hosted" short term vacation rentals? 


    My question is: I have a home under contract in Kona that I would like to declare as my primary residence and use as a vacation rental but I also have a home and work on the East side so I would only be in Kona ~2 days a week. Could I still get away with calling that a "hosted" rental if it is my principal/primary residence and I'm only spending the night there a couple days a week (more during holidays and breaks as I am a school teacher).

    Thanks in advance,

    Michael

    0Reply
  • Tom Wagner
    Real Estate Agent · Minneapolis · Member since 2019 · 338 posts · 219 votes
    5y

    The FHA limit in Hawaii on fourplex is over $2mm!! Has anyone in Hawaii successfully landed a fourplex for $2mm+ with just $70k down? Do such properties exist?

    2Reply
  • Chris Piel
    Rental Property Investor · Kailua Kona, HI · Member since 2019 · 16 posts · 4 votes
    5y

    Michael, I would double check with the county planning department who issues these permits to non hosted rentals. They might be able to clearly explain what qualifies as hosted and they aren’t “out to get you,” so you can be frank about your situation. If it doesn’t qualify you could look at longer short term uses such as VRBO with longer minimum stays or websites that cater to traveling nurses and medical professionals. 

    0Reply
  • Chris Piel
    Rental Property Investor · Kailua Kona, HI · Member since 2019 · 16 posts · 4 votes
    5y

    @Tom Wagner the FHA limits vary by county. I was priced out of a bankable property on the west side of the island when I looked (albeit not that long) into this but I imagine FHA works outside of kona, waikoloa and Waimea. However...if your credit is good you may still qualify for a 5% down payment with a traditional loan which is pretty darn good.

    0Reply
  • Michael H.
    Member since 2021 · 2 posts · 0 votes
    5y

    @Chris Piel Thanks for this! This is helpful.

    Curious if anyone else here has experience with hosted Short term vacation rentals and how stringent the county is around this?

    Thanks,

    Michael

    0Reply
  • Duc Ong
    Real Estate Agent · Honolulu, HI · Member since 2015 · 450 posts · 196 votes
    5y

    @Tom Wagner While it's possible, I think it's difficult for most people, since the purchasing power is still constrained by the debt to income ratio. Also, FHA offers are not as favorable as conventional ones, especially if you're competing in a seller's market.

    1Reply
  • Tom Wagner
    Real Estate Agent · Minneapolis · Member since 2019 · 338 posts · 219 votes
    5y
    Originally posted by @Duc Ong:

    @Tom Wagner While it's possible, I think it's difficult for most people, since the purchasing power is still constrained by the debt to income ratio. Also, FHA offers are not as favorable as conventional ones, especially if you're competing in a seller's market.

    Do you know of anyone successfully pushed above $2mm on a fourplex in Hawaii? I just want to meet the person in the USA with the largest FHA 1-4 unit mortgage!

    0Reply
  • Daniel Vincent
    Real Estate Broker · Kailua Kona, HI · Member since 2018 · 1 post · 0 votes
    5y

    @Dillan Stoor

    Young and hungry agent/investor/property manager living in Kona. 

    0Reply
  • Paul Winchell
    Investor · Kailua-Kona, HI · Member since 2018 · 24 posts · 34 votes
    5y

    @Michael H. There have been a couple threads recently that discuss the topic of hosted STVRs on Hawaii Island.  I'm not sure how to link them here but you can find my replies through my profile.  In short, hosted STVRs are a bit of a grey area -- not specifically defined by the new county code.  My local agent knows a number of people who are doing it currently, and have not had any problems with the county.  But calling the planning department would still be the safest way to go, especially if you are spending most of your time away from the property.  My understanding of a "hosted" STVR is that you must be physically living at the property during the time that any rental occurs.

    @Dillan Stoor We've responded to a few topics together but let me officially welcome you back to the Big Island.  I live in Kona currently and am much more knowledgeable about the west side of the island, but I'm happy to help however I can.

    --Paul

    0Reply
  • Guy Purdy
    Investor · Maui · Member since 2008 · 9 posts · 0 votes
    5y

    Hey All,

    My partner and I are looking to invest on the Big Island as well.  It's great to see there are others currently investing there.  Would love to chat and meet a few of you?

    0Reply
  • Lisa Sakimura
    Investor · Member since 2019 · 1 post · 0 votes
    4y

    @Arla C. Meyer Hi! Interested in joining Big Island Real Estate Investors Group (we have a few properties in Hilo) but the image you sent is corrupted. Could I have Roy Dolwett's contact? Happy to DM you too. 

    Thanks!

    0Reply
  • Arla C. MeyerPro Member
    Investor · Hilo, HI · Member since 2016 · 19 posts · 7 votes
    4y

    Hi,

    Can't post numbers here. Google Roy Dollwet, Hilo Bay Realty. 

    Hope to see you on zoom.

    Arla

    0Reply
  • Victor Sine
    Investor · Layton, UT · Member since 2020 · 17 posts · 7 votes
    3y

    @Paul Winchell @Daniel Vincent @Tom Wagner @Chris Piel @Duc Ong

    Hey y'all! I am looking to get into the big island market and I know very little. I'm looking at a deal and want to know if this area is good or not.... I know some areas people don't buy because of the active volcano. I think this is one of them. I just want to know why it's so cheap (other than the obvious) and if there are reasons why people don't buy in this area. 

    I have multiple STRs in Puerto Rico and LTRs there too as well as in Utah. 

    Here's the link of the Hawaii property:
    https://www.zillow.com/homedetails/11-1811-Mahina-St-Mountain-View-HI-96771/122020487_zpid/?


    Any feedback is much appreciated. 

    0Reply
  • Cole SchlackPro Member
    Realtor · Hawaii, HI · Member since 2015 · 145 posts · 95 votes
    3y
    Quote from @Victor Sine:

    @Paul Winchell @Daniel Vincent @Tom Wagner @Chris Piel @Duc Ong

    Hey y'all! I am looking to get into the big island market and I know very little. I'm looking at a deal and want to know if this area is good or not.... I know some areas people don't buy because of the active volcano. I think this is one of them. I just want to know why it's so cheap (other than the obvious) and if there are reasons why people don't buy in this area. 

    I have multiple STRs in Puerto Rico and LTRs there too as well as in Utah. 

    Here's the link of the Hawaii property:
    https://www.zillow.com/homedetails/11-1811-Mahina-St-Mountain-View-HI-96771/122020487_zpid/?


    Any feedback is much appreciated. 

    Im on the big island, I would avoid this area , I own a few cheap lots by the Ocean in Pahoa which is better than this area. Happy to send you in the right direction. 
    0Reply
  • Victor Sine
    Investor · Layton, UT · Member since 2020 · 17 posts · 7 votes
    3y

    @Cole Schlackthank you any reason why? I really want to make it into an Airbnb and live there sometimes 

    0Reply
  • Victor Sine
    Investor · Layton, UT · Member since 2020 · 17 posts · 7 votes
    3y

    If it ends up not bnbing I don’t mind since it’s so cheap

    1Reply
  • Charlene Acosta
    New to Real Estate · Honolulu, HI · Member since 2020 · 5 posts · 1 vote
    3y

    I have looked and been to the Big Island and actually own a piece of land there, with similar plans as yours. What I learned: is that Each/most sections of the Big Island belong to a "subdivision". And each Subdivision has its own rules for what they would allow as a "permitted residence" (in regards to size, operations/usage, etc.) same for building and managing/operating the property. I did not look up this particular subdivision, but you may want to do that when you are searching and reading up on what they do and do not allow. Many of these homes were built by owners without permits from the county, not sure exactly what that entails, but if you do buy one with no permits, you would have to address with the town as the new owner, if you would like to remodel or make any further changes correctly. There are also other ever-changing rules for AIRBNB/short-term rentals in Hawaii, The last I know is that there is no plans for new homeowners to be able to get a new permit to legally do ARBNB/STR with their property, and that a STR cannot be less than 30/90 days-(not sure what was the actual latest on this). Some people still do it, I haven't as I have heard stories of hefty fines if an ARBNB/ STR is not abiding by the state/city regulations. One also has to consider that it may be a challenge to get home insurance for a home located in a risky lava zone, although I know some people that have been able to get it. There are a few posts about this in BP forums and some even have links to the state's website with the ARBNB, Short term rentals updates.

    0Reply
  • Paul Winchell
    Investor · Kailua-Kona, HI · Member since 2018 · 24 posts · 34 votes
    3y

    @Victor Sine

    Leaving all discussion of location aside, you would not legally be able to use this property as a STR. Hawaii county law has some pretty strict zoning restrictions in place for un-hosted STRs (ones where the owner does not actively live on the property), and in fact there is new legislation set to pass within the next year to severely restrict hosted STRs as well. As @Charlene Acosta mentioned, there are people who do it still and get away with it, but many who get caught and heavily fined.  I can tell you that this is a hot-button issue that they are actively enforcing.  The fines can spiral too.  If you try to pay taxes on your income from an illegal rental, they've got you there, and if you don't pay the taxes, then when they catch you they've got you for tax evasion as well. In my opinion it's not worth the risk.  Buy a STR zoned condo if you really want to AirBNB on the island.  Otherwise do long term rentals.

    --Paul

    2Reply
  • Cole SchlackPro Member
    Realtor · Hawaii, HI · Member since 2015 · 145 posts · 95 votes
    3y
    Quote from @Victor Sine:

    @Cole Schlackthank you any reason why? I really want to make it into an Airbnb and live there sometimes 


     First its no really the Vacation part of town, this is a local neighborhood. Second as it was pointed out you can not do Airbnb less than 30 nights.  I would look in this area, https://myre.io/0jS7VAmXAEbj

    0Reply
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