All Forum Posts by: Duc Ong

@Jacob Trimble I would sell before the capital gains window closes. $100 cashflow isn't life-changing, and the deal seems tight if you're self-managing. If you had to use a PM, that cashflow might be closer to zero. Self-managing out of state rentals is possible, but not very scalable. In my opinion, if you are remote, it should be stronger cashflow, and I wouldn't bet on appreciation. 

We will be in The Social Room.
BYOB - bring drinks/snacks to share

Agenda:
6-6:30PM Open networking Round 1
6:30-8:00PM

- Give/Ask Format: Share something of value that you have learned about

multifamily, investing, or business in general with the group. Ask the

group for help with something you are working on.
8:00-9:00PM Open networking Round 2

@Ryan O'Leary When you leave, will you be negative $5K in cash flow per year? If so, the appreciation would need to be greater than that and cover the opportunity cost of not using the equity that you could get from selling in investing in cashflow assets. Appreciation is great and can be much more lucrative than cashflow, but it's uncertain. There are fundamentals that point towards more market appreciation in the long run, but in the short term, it's speculation. 

@Carl A Maybin II Sounds like a great deal! What marketing strategies did you use for getting multiple buyers?

@Aaron Kawamoto Welcome to BP! I'm hosting an multifamily event on 1/7/20, 6-9PM at Waihonua. Details here:
https://www.biggerpockets.com/forums/521/topics/782934-honolulu-multifamily-and-more-meetup
Join us if you're free!

@Jordan Delima I think this would depend on your situation and what your plans are for the funds. In most cases, selling and reinvesting into a higher cashflow market might make sense, but not always. Generally negative cashflow is not ideal.

Agenda

6-630PM: Open Networking
630-7PM: Michigan Portfolio Case Study by Tri-city Equity Group
7-8PM: Small Group Networking 1
8-9PM: Small Group Networking 2

Bring snacks/drinks to share!

@Ryan Webster They are legal in resort mixed use zone areas. For example, see map below.

@Jessica Lynn Hawaii is hard to make cashflow and requires a higher barrier to entry, or a willingness to be flexible with the neighborhood. However, it is possible to profit. Two methods are legal short term rentals, and multiple units/entrances (house-hack). It's similar to most other primary markets, where the long term rental numbers are usually negative cashflow at 80% loan to value. As for cash, what you would be giving up is the opportunity cost of getting a greater return by deploying your capital optimally. Also, it would take a lot longer to get in the game if you need 100% for every deal you look at. The most important metric in my opinion is Return on Equity, which is your profit divided by the equity in the deal. Lastly, if you run your investments like a business, it should be possible to maintain a full time job and still manage your assets. 

@Lisa Gauff If you're looking for short term rentals on Oahu, the recent STR laws have come into effect, which makes things more restrictive, but not impossible. There are still opportunities that can work, but they would require more effort than before. As for CA, the downside is the law not being very landlord friendly, along with the high fees to maintain an LLC and rent control. I own a SFH in Anaheim, CA, which I rent out to my family, so I'm not concerned about liability. If it weren't for my family, I would have sold it already.