All Forum Posts by: Zander Kempf

In a market like Hawaii, property value are much higher than other markets. These high prices makes investing for cash flow more challenging. There is one strategy in Hawaii that many investors frequent, short term rentals. With the recently passed Bill 41 in Honolulu, STR's are limited to resort zoned properties, which there are a handful of. These STRs are often in hotels, and called condotels. They can be purchased by the investor and handed back to hotel (ie Marriott, Hilton etc) to use as one of their resort rooms. They take care of property management end to end. Whenever the investor wishes to visit, their property is waiting for them to use as long as they please.

This strategy also allows investors to gain access to world class amenities like elaborate pools, spas, beach access, top tier bars and restaurants, and luxuriously decorated grounds and common areas. 

@Stacey Ocampo

Hawaii can be a great place to invest, depending upon your investment goals. If you are looking for an incredibly stable market, with strong long term appreciation potentials, Hawaii is the place to go. 

If you are looking to buy a property that you can also vacation to, a short term rental in Hawaii is the perfect solution. 

Flips are possible, but almost always (recently) are found off market. Condo projects (where you buy a lot and divide it in two, selling each lot separately) are very profitable and low risk, though they are tough to find.

@Kevin Ing Leaseholds and landleases do have some uses, like for someone who doesn't want to buy but they know they will be renting in the area for while. But if at all possible, I would certainly recommend fee simple purchases. 

@Matt Guptill

This is definitely possible and a great strategy. Income qualification will be the biggest hurdle here, but is usually something a good lender can work through.

I know a couple great local VA lenders on island that I'm happy to recommend (one that I've used myself).

I'm also happy to chat about finding some good deals and the areas that I've seen the best cash flow and appreciation potential.

@Tyler Henry long time investing is certainly feasible, as long as you partner with a solid property management company that has a good track record. I'd be happy to recommend some on Oahu if you're interested.

Remote ownership of something like a condo is much easier than a house since there are many less maintenance items you need to worry about (lawn, roof, siding, plumbing etc).

There are some new short-term rental laws that have been put in place, though there are several investment opportunities to own short-term rentals. This gives you the ability to have some income to cover operating expenses, and also gives you your own property to vacation too when you visit. Best of both worlds.

To make the numbers work, you do need to bring some down payment to the transaction, but if you, or if you partner with some people, are able to make the purchase, Hawaii has one of the most robust and stable real estate markets there is.

I'd be happy to chat more about how to find a good deal in Hawaii.

@Kevin Ing You pretty much covered it. The lessor has a much more advantageous position. I've seen an owner do a 500% increase on lease rent, and the lessee had no choice other than to accept it or walk away and give up the buildings they had built.

@Wyatt Maa HELOCs are typically for a primary residence. If you have equity in an investment property, you would want to do a cash out refinance to be able to tap into the equity, or a 1031 if you want to sell the property and purchase another.

It looks like it's a new service they are just starting to offer. I have a couple colleagues that have looked into it, but didn't move forward due to the high cost. 

My first deal was a single family turn key in Oklahoma city. I took the strategy of scaling by deal size, so I have worked my way up to my current project of a 63,000 SF mixed use development, which includes a 37 unit affordable housing component. 

Keep pushing towards your goals, all day every day, and eventually you will get there

The massive amount of pre-development work required to get a LIHTC application approved makes small projects difficult to justify. Every state has different project sizes that the target. In New Hampshire for example, it appears that the sweet spot is 30 to 50 unit projects.