Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
In 2011 I bought my first ever property, in Honolulu. I used a VA loan and put about 12-15% down (didn't have to). Initially, I lived in the 1BR and then I realized that the separate entrance small bedroom and bath wasn't really used. I began to rent this space as my first ever foray into being a landlord. A nice $750 per month.
I believe my first loan was in the high 3s %. Fast forward five years or so, I performed a couple cash out refi's which pulled $60K in cash out of the property. It was at this time that I also moved out of the 1BR.
Its important to mention that the HOA fees were initially $375, which was incredibly low for the area. This eventually ballooned to $750, the amount that it is today. About normal for the area. Around 2016, I started renting out both units separately - the 1BR for $1700 - 1950, and the studio for $800 - 1200. This depended on market conditions and whether or not there were pets.
Keep in mind I was always at least 4-6000 miles away. Living all around to include Asia. In 2017 I basically started investing heavily into passive syndications. I didn't buy any additional rentals - except for 1 sold 1 older unit on Hawaii and exchanged it for a new construction rental on FL. Besides that, it was all diversifying into K-1 passive investments.
As a semi-busy professional, most of us eventually get tired of being a landlord. Even if you told me I can make a 50% IRR on my rentals, I would still take my 15-20% IRR as a passive investor. All day long.
I've been managing my rentals remotely but honestly could have paid more attention to them. As mortgage rates were falling, I decided to do another refi in 2021. Main motivation was to get out of the crooks that are Wells Fargo. This actually took almost 8 months (the first lender couldn't deliver), then the 2nd lender did the refi in under 14 days from start to finish (go figure).
Now, my interest rate is 2.375% and my PITI monthly is just over $1000. HOA fees are $750. CapEx have been 0% (HOA fees cover this), and repairs have been minimal (<1%o of gross rents), due to this being a remodeled condo.
Today, my today gross rents are $3150 - for a 'cash flow' of about $1450. I have $0 in this property, so its an infinite return in a sense. This is more of a fun property and I only consider my syndications income as what I can live off of.
The moral of the story. Always be positive and energetic, and don't take this stuff too seriously.
Don't "wait until the market crashes next year, then buy in". It won't. That mentality will make you poor while others who took BOLD action will pass you buy. Happy to discuss real estate any time.