Perfect Oahu Military Rental

[Nate Zito]

Investment Info:

Condo buy & hold investment.

Purchase price: $780,000
Cash invested: $18,000

-Address: 112 Puwa Place APT 4, Kailua, HI 96734
-Loan Type: VA
-Renovation Total: $18,000

What made you interested in investing in this type of deal?

First property. Phenomenal learning opportunity in a unique market - Oahu, HI. First of two VA loan entitlements.

How did you find this deal and how did you negotiate it?

Zillow through and through. Our agent was critical in making our offer the official backup, which ended up working in our favor when a competing offer was deemed invalid.

How did you finance this deal?

VA loan, 30 year, 6.21%.

How did you add value to the deal?

New refrigerator, dishwasher, luxury vinyl flooring downstairs, kitchen cabinetry, kitchen sink, bathroom cabinetry, bathroom sinks, minor backyard landscaping, various indoor and outdoor light fixtures.

What was the outcome?

Oahu's appreciation is unique to many parts of the continental United States. Although we aren't cash-flowing, the current Zillow Estimate is $915,800. Initial purchase price was $780,000 in January of 2024, not too shabby.

Lessons learned? Challenges?

Find a breakeven or cash-flowing property. Stay open to assumables. Research what major upgrades would cost. Consider using the money that you would have saved in a low-ball offer to buy down the rate upfront. Biggest mistake we made was paying asking price, AND not buying down the rate. Compare potential for future rents during the buying search.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My property manager Casey Nichols with Heritage Realty LLC is phenomenal.