So I just tried to begin analyzing my first properties yesterday and I hit a snag.
I live on the island of Oʻahu in Hawaiʻi and I am interested in buying rental properties. We recently sold our townhouse to make a small profit and went back to renting to save money in order to finally start investing.
I feel like we can afford to purchase something in the range of $100-150K, which basically means apartments or townhouses in various locations of the island. However, they all seem to be leasehold properties, which makes sense because most are located in high rise buildings in Honolulu.
My question is, is there ever a reason to buy leasehold properties for the purpose of making them into rentals? And furthermore, would I be better off investing with a partner to find fee simple properties instead?
I apologize for my ignorance in advance, please correct my thinking where I have fallen short :)
Well, before worrying about leasehold vs fee simple (which is a solid worry), can you even cash flow on those anyway? I've never heard of HI being able to cash flow, and especially if it's something in a high-rise which I assume would add in even more expenses with condo/HOA fees.
Solid points. I think I needed to hear how foolish the idea was and why before folding. Thanks!