All Forum Posts by: Rob King

@Roy Kharmats welcome to a fun but challenging market. I have bought a few estate sales and one truely vacant property out here for live in flips that I then rent, refinance, and move onto the next opportunity. Let me know if you want to talk story sometime but I would suggest you study a specific market (I chose Makiki) and mentally go through say 15 deals from soup to nuts before diving in because this market is not forgiving.

@Jake Silverman there has been a strong market on the islands for numerous years, recently Kauai saw almost 100% appreciation in less than 2 years so the market is slowing to correct for that rapid expansio and yes there is the staggering affect of covid as the islands saw unemployment rates above 32%.

I am not a realtor but an investor and even my open source research suggests that over 70% of sellers are waiting until the quarantine is lifted, that being said my better half just signed on a SFH below market that needs a lot of TLC but we will be able to see instant equity.

The market is in an interesting place but as an investor there are plenty of opportunities. Some will say wait until the correction stabilizes but I've never met anyone who can time a market.

Jacob, I think you are ahead of the curve by working to ID your property type and creating a plan several months in advance though I would adjust your mindset slightly, don't look for a foreclosure, look for the property where the numbers make sense and be open to foreclosures.  Forgive me if this sounds like word-play but as someone who has bought multiple distressed properties on Oahu, including a foreclosure at auction, it was an important distinction so as to not attach an emotional preference to certain properties.  Two good friends and coworkers of mine were over the moon because a short-sale became available in their preferred neighborhood and they instantly equated short-sale with good deal subconsciously even before running the numbers.  They became emotionally invested in the property and then tried to justify the property despite the numbers even though one half of the couple is a CPA.  Thankfully they took a step back, saw the bigger picture, and ID'ed two better properties within a week.  Best of luck with finding a property!

@Mindi Rosser I am based in Honolulu and have successfully househacked three properties in Makiki so it can be done but the entry price can be staggering. You are right that COVID will present opportunities but with our island's unemployment topping 32% and market news outlets suggesting that 77% of sellers are holding off until the stay at home orders are lifted you are also going to see less inventory (though likely very motivated sellers).

If you haven't read David Green's BP book on out of state rentals it provides a good foundation and strategies for building a team. Having people you trust in the market is a huge advantage and may mitigate some discomfort associated with long distance investments but it all comes down to numbers and goals.

My better half and I are considering a property in Makakilo or Idaho so we try to analyze 3 properties a night while weighing them against our long term goals. I believe that with that continuing education we will know the markets well enough to strike when the numbers make sense with our goals, either here or on the mainland.

Have a great week.

Rob

@Justin Jones Oahu's market is in a very interesting place right now. I bought a BRRRR in December and even since then we've seen a shift in the market.

As for properties that have been on the MLS for a period of time there are a few reasons that could present red flags and others that could present real opportunities. Since this isn't an Oahu specific thread I'll reach out to you directly.

@Kinohi Larey hey guys ,I have rented to travel nurses in the past on Oahu, I find them to be excellent short term tenants. There are some Hawaii and Oahu specific forums for these groups if you are interested.

@Duc Ong looking forward to joining this, thanks for putting it together.

@Isi Nau well said.

@Jimmy Joyce great question and well articulated. I have house hacked three condos in Makiki in the past 5 years and it's been great for me. Honolulu has a very steep entry fee but theres a reason everyone wants to live here and I've never had a problem with vacancies.

I'm not a realtor but I've learned some lessons along the way, if you want to talk story please don't hesitate to reach out.

Rob

@Kory Sheldahl great story! I am a buy a hold investor on Oahu and while difficult it can be done. Glad to see your BOH contact was so excellent.