All Forum Posts by: Bryan Vukelich

@Cole Schlack - great post Cole.  Much of that applies to owning on O'ahu but thought it might be helpful to readers to add some remarks regarding O'ahu compared to Big Island.

1) Same on O'ahu.

2) Same on O'ahu

3) It's pretty dang expensive here. Got gas at Costco this past weekend and happy to see premium was $4.54. And electricity rates have gotten even more expensive this year. And we definitely have some of the highest property values in Hawaii, but recently I've had a VA buyer acquire a 2 BD/ 2 BA townhome for $486k - based on comps, it was a very good opportunity. I just had another buyer go under contract for a nice attached home in Pearl City for $720k, and seller is crediting back 4% to cover the buyer's closing costs as well as payoff some debt. Plus the home has existing space to create a rental unit. I think he'll do well with it.

 But despite how expensive some things are here - the ability to surf year around in pretty warm water . . . priceless. 

5) No lava here - but we got some of your VOG last week.

6) Agree expect we don't have plenty for sale right now - very low STVR inventory at this time on O'ahu. 

7) I am big fan of the Big Island and may eventually move there - but for now I love all that O'ahu has to offer.  
 

Aloha, 

Hi @Eduardo Bilbao - I just want to clarify that the STR situation on O'ahu has cleared up significantly and things have turned out quite well. Department of Planning and Permitting opened up the STR registration on October 24th, 2022 and once you submit the required documentation and pay the fee, you will receive authorization to do nightly rentals. Key thing is that your building has to be recognized as vacation rental building and the building association has to allows STR's. Clients have told me it the entire process went smoothly for them.

So at this point, I see no reason not to invest in an STR on O'ahu if it fulfills your real estate goals.

Aloha, 

@Tom Holiday -  @Olivia Radziszewski and @Jamel Brown gave you good advice. In my experience, service members do quite well putting their VA benefits to use while they are stationed on O'ahu. All my VA clients who have purchased and sold when they moved off island have made money. But if you are able to swing it, my recommendation is that when you PCS, you try to refinance out of your VA loan and hold your O'ahu property for the long term. With limited land, difficulty in building new homes, and usually strong global demand for real estate here, if history is any indicator, you'll likely be happy with the appreciation of any property you own here for for the long term. Plus the rental market is usually strong and with the military presence, there are some great renters.

And congrats on saving up $25k. With your VA benefits you will be able to buy a property with zero down, so you can put the $25k to work elsewhere.

Take care and if I can be of service to you in any way here on O'ahu, you're welcome to contact me any time.  I am here to serve you.  

Hi @Yna P. - there was actually an injunction halting the 90 day rule so properties in residential areas can still do 30 day rentals on O'ahu if desired.  Happy to answer any other questions you have.  

Best, 

Hi @Cole Schlack - here on O'ahu, if priced right, STR's are still going under contract quickly. Not too long ago I represented a buyer where she put in an offer on a unit at the Ilikai the first day it hit the market. Seller required my client's initial earnest money be non-refundable if he accepted the offer, otherwise he was going to wait a week before reviewing offers and it was very likely they would have received multiple offers.

Regarding the recent regulations - Bill 41, a judge recently issued an injunction on the 90 day minimum so any owner can continue doing 30 days rentals (as long as the building association allows it). And on October 24th, the registration portal for STR's went live, and surprisingly it seems to be going rather smoothly. The DPP is giving conditional registration approval once an owner submits the required documentation since it will take time for them to review all the docs. Fee to register is $1000 and is nonrefundable.
 

Best regards, 

@Ryan Ino - my pleasure and glad that info was of value to you.  Lots of rain in Kane'ohe today - hope your side is drier.  Contact me any time if you think I can be of help. 

@Ryan Ino - Yes, other than Bigger Pockets there are some great resources on YouTube - King Khang has some very helpful videos - especially some of his older ones.  But he is not the only one, I recommend going down the rabbit hole and watching other wholesaler channels as well to see who/what resonates best with you.  Along with that, I recommend the following:

* For liability reasons, I'd create a business to run your wholesaling business through. My brother and I used an LLC but recommend you talk to an attorney for best structure.

* Create a purchase contract  - recommend you have an attorney review it to protect your interests.

* Create a assignment agreement - also best to have attorney review.  (you might find a wholesaler who will give or sell you his/her purchase contract and assignment agreement)

* Network, network, network - deals can come from anyone.  Ask people if they know some who is interested in selling.  

* Build relationships with home builders and real estate investors - anyone who might be interested in your wholesaling deals. 

* You'll need to cold call if you want to succeed in wholesaling but I am also a fan of online marketing  - so much nicer to have a "warm lead."  So you might want to create either a legit website or just a landing page to capture online leads.

Good luck and happy to answer any other questions you have, 

Hi @Jessie Bayudan - I suggest you contact my brother, @Brandon Vukelich if you are open to investing in W. Washington St area - he has many years of real estate investing and helping other acquire investment property and has a solid team established.  If I can be of value to you in any way here on O'ahu, contact me at any time.

Best 

Hi @Yna P. - overall, most of the feedback on Bill 41 that effects STR's on O'ahu seems to be very negative and the only ones who truly support it is the hotel industry. For the "local little person" who is having a difficult time keeping ahead of the rising costs of living, as well as an employment market that overall has mostly low paying jobs, operating STR's was a nice way to supplement their income - plus is also helped increased property values. So having to do 90 days rentals now outside of resorts areas is a detriment to many people.

Other issue is that if you own a STR within a resort area on O'ahu where STR's have operated legally for years, now with Bill 41, effective Oct 23rd, 2022, owners are required to register their unit with the Department of Planning and Permitting and obtain a registration number before they can legally operate as an STR. There is a lot of uncertainty whether DPP will have the registration in place by Oct 23rd, and if they don't, what will happen then but more lawsuits against the bill wouldn't surprise me.

All in all, the gov't has created a mess.    

My pleasure @Michael Baum - and yes, inventory for STR's on O'ahu is very tight right now and still a lot of interest from buyers.