Updated over 5 years ago on . Most recent reply
Two buy and hold opportunities
Hello, This is my first post here on biggerpockets. I live on Maui, Hawaii, and am loooking to start REI, I have been studying and looking up deals for a while now.
2 opportunities have presented themselves.
In short, one mansion style home taken apart in sections with every piece retained, due to being built in wrong place too close to ocean, ready to be rebuilt. 150k to buy, haul it to any property, permitted to rebuild. offer of 120-200k to have demo team rebuild it as desired, materials alone worth 1.5M+, can sell at 2-3M or rent at 15k/mo. FCFS person with 150k.
Second opportunity is a home for 599k, 500 down to close, owner is second lienholder looking to close out Bank NY first lienholder for 455k cashout. Wants to do a double escrow. Willing to negotiate on some terms. house in great condition, highly rentable, in medium area, for 1800-2500.
Any suggestions do these numbers work for 1st time buyer, and where to find investors?
thank you.
Most Popular Reply
The second one for 599k sounds like 869 mahealani st. What Mark is looking for on that one is a little more complicated, and if that is the house you're looking at it's very far from great condition.. it could be rented as is. But really it needs a complete rehab. Do you have the 500k liquid cash to close on this? That's the big roadblock.. it's not financeable.. maybe not even by HML.
I'm not sure what you're strategy is; buy and hold? Or flip? I would not suggest either of those deals to a first time investor. They both sound way too complicated. If the experienced full time investors on Maui are not buying them, that usually means there's something wrong. I suggest starting with buying a condo at harbor lights for cash flow, like many of the Maui investors did (myself included). I wholesale some of them from time to time, but they don't come up often.