New to real estate, committed to moving back to Oahu Hawaii.

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New to real estate, committed to moving back to Oahu Hawaii.

Hyun Cho
Leesburg, VA · Member since 2017 · 3 posts · 1 vote

Hello everyone! I'm Hyun Cho, currently living in Leesburg, Virginia. I'm completely new to investing in real estate and currently learning all I can. I grew up in Northern Virginia and lived in Santa Fe, New Mexico as well as Honolulu, Hawaii. About four years ago, I left Oahu to help with the family business in Virginia. Unfortunately, the business hasn't worked out and I have gone back to working retail and with my girlfriend and two dogs, moved in with my parents. I have always rented, never owned.

In my 7 years in Honolulu, I was fortunate enough to work for Reuse Hawaii, build furniture, participate in the rehabilitation of Kakaako, and became friends with master craftsmen, artists, and design professionals. With these people in mind, the potential for a successful real estate team is there and I can not wait to get started.

By Spring 2019, I'm committed to being out of bad debt ($37k), find a Hawaii based lender, realtor, and a single family home. I'd like the home to be a 4-6 month rehab BRRRR , so I can jump in and gain first hand experience. I want to have 4-5 rental properties in Hawaii by 2023, before I start investing in New Mexico.

Bigger Pockets has turned my negative and fearful attitude towards real estate, into a positive and curious one. It has encouraged me to set firm commitments towards building a better life for everyone in my life. Thank You!

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Isi NauPro Member
Real Estate Broker · Mililani, HI · Member since 2016 · 217 posts · 253 votes
8y

Hey Hyun.  You can make money in Hawaii.  I've done it.  My clients have done it.  All the best!

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  • Michael Duncan
    Investor · Honolulu, HI · Member since 2016 · 36 posts · 11 votes
    8y
    Way to go man! Sounds like a great story, let me know if you want some advice!
    1Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    8y
    Hyun Cho I don’t know why you would want Hawaii real estate. There is too much foreign money looking to launder money here not to mention nothing cashflows. Plus idk why you would be looking for a hawaii based lender. Try buying rentals in NM where you are local. It’s a decent market.
    1Reply
  • Isi NauPro Member
    Real Estate Broker · Mililani, HI · Member since 2016 · 217 posts · 253 votes
    8y

    Hey Hyun.  You can make money in Hawaii.  I've done it.  My clients have done it.  All the best!

    3Reply
  • Jack Butala
    Los Angeles, CA · Member since 2014 · 2k+ posts · 515 votes
    8y

    @Hyun Cho great story!! Thanks for sharing it with us!

    And welcome to BiggerPockets!

    You are definitely on the right track.  Capitalize on all of the free resources this site has available at your disposal.  The blogs, podcasts, and articles are all excellent information havens on here for you to acquire knowledge as you progress in your real estate investment career.

    Also, network with other investors. Pick their brains, be a sponge, and soak up the information.  No better source of information than experienced investors out there actually doing the deals.

    Finally, consider joining a real estate investment club in your area.  It's there you can meet potential business partners, funders, other investors, etc.

    We are happy to help any way we can.  Congratulations once again and I wish you the best of luck in your real estate investing career.

    1Reply
  • Mike V.
    Rental Property Investor · Campbell, CA · Member since 2017 · 419 posts · 499 votes
    8y
    Originally posted by @Lane Kawaoka:

    Hyun Cho I don’t know why you would want Hawaii real estate. There is too much foreign money looking to launder money here not to mention nothing cashflows.

    Plus idk why you would be looking for a hawaii based lender.

    Try buying rentals in NM where you are local. It’s a decent market.

    Another Hawaii hater lol  I don’t understand why this thought process is so common.

    I net 20%+ (not including appreciation or loan pay down) per rental. I've successfully completed a BRRRR on my STVRs and rolled the funds into new condos, essentially netting me infinity ROI (since I've pulled out over 100% of my invested capital).

    This typically takes about 5 hours worth of ‘work’ per week (not including initial new property setup).  For those who say, “20% isn’t good enough for a STVRS” I say this... I’d rather own 10 properties netting 20% of $200,000 and only have 10 doors to worry about vs 200 doors at 30% at a lower price point... the incremental increase and headache just isn’t worth my time.

    I do see people fail here all the time.  These people are the type who pass it to a full service property manager charging 40% gross rent and demand to use their condos during peek season.  If you run it like a business AND purchase smart, it’s almost impossible not to make money.  

    1Reply
  • Hyun Cho
    OP
    Leesburg, VA · Member since 2017 · 3 posts · 1 vote
    8y

    @Michael Duncan Thank you! I'll definitely bother you for your two cents in the near future.

    @Lane Kawaoka So, what are you doing in Honolulu?

    @Isi Nau Thank you!

    @Jake Butala Thank you for your words of advice and encouragement. Much appreciated.

    @Mike V. Thank you for your constructive reply. I understand people fail all the time and fail anywhere, doing anything, so failing is not a concern. From the amateur analysis I've done on a few properties, the returns aren't 20% but they are enough for me to think it's very doable.

    0Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    8y
    Hyun Cho I lived on the mainland for a decade and saved and invested right. More importantly I built the connections I needed while up there. Not I just drink pina collatas on the beach ;/
    0Reply
  • Chivas Miho
    Honolulu, HI · Member since 2016 · 76 posts · 44 votes
    8y

    @Hyun Cho - I'm still a novice in the RE community, have 6 doors in Michigan, but born and raised here on Oahu. Hate to burst your bubble here but we have an extremely expensive market here. It's common to hear locals say they had bought a property before the boom and was fortunate enough to have gained massive equity in their properties over the last 30 years. But new investors have slim pickings for any deals. Average single family residence will run you around $700k on the low end and can easily run in to the $900k+ range. Condos have been attractive because their price is more "affordable" in this market, but affordable means $400k - $500k for a 1B/1Ba that will typically get you an average $1500/mo in rent but your HOA fee will run in the $400 to $600/mo range. This is $1500 per month/$400k = 0.375%....everyone talks about the 1% and 2% rules. This is a common scenario here on Oahu, cashflow is extremely rare. Plus, on top of this, you're competing with the a massive affordable housing shortage on the island where first time homebuyers are willing to spend much more than an investor.

    I commend you for taking action to cut down the debt, but I encourage you to really run your numbers in this market.  You don’t want another liability putting you back in debt again.  Good luck.

    0Reply
  • Duc Ong
    Real Estate Agent · Honolulu, HI · Member since 2015 · 450 posts · 196 votes
    8y

    @Hyun Cho let me know when you are ready, I can definitely help.  I'm an investor and realtor who specializes in working with investors.  There are definitely ways to make money here on Oahu, but they are not always obvious.  In the meantime, I would suggest investing locally where you are, since I'm sure there are deals there that cashflow.

    0Reply
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