Numbers from Beginners Guide
Hello Everyone. First post.
I’m in Hawaii, Maui, born and raised. Seen the life locals have to do just to get by - not a fan of 2 jobs plus seasonal side jobs.
Read RDPD (rich dad poor dad) and it opened my eyes to the values of real estate.
I plunged into the beginners guide offered by bigger pockets. Great starting info but I had a question that’s particular to Hawaii.
Right now on Maui the market is ridiculous. It’s poking $600k.
The numbers I’m talking about are the 2%, 50%, and 70% rules. I know it’s a general guide line but I was wondering if I could get some advice based on inflated numbers.
A house at $600k should rent at $12k/mo? (2% figure)
A house at $350k for a fixer upper @ 70%, $245k - $80k for rennovations = $165k max offer.
I think it’s because I’m a super greenhorn at viewing prices regarding real estate, but offering $165k for a fixer upper on Maui seems like a slap in the face to the seller?
Again, I know these figures are just general. If someone who has been dealing with the Hawaii market can chime in and help out a beginner, I’d be REALLY appreciative!
Mahalo!