All Forum Posts by: Johnny Aloha

So you're paying an extra $60-80k just for the opportunity to get seller financing? I'd find another deal.

Michael, I have a friend who purchased a SFR through Memphis Invest. He purchased all cash, and has been very satisfied with the company. The checks show up in his account regularly, he hasn't had any headaches (to date), and he is happy with the sales rep who follow up with him periodically.

Welcome Toby!

All the traffic from your post must have crashed the site!

Excited to follow along!

Wow, congrats!

Is she signing a standard lease? I couldn't tell from the thread. All I saw was "6.Current owner is signing a document stating she will not damage the property other than normal wear & tear. "

Interesting thought, and I've wondered the same thing over the past two years. In my area, we've also experienced silly appreciation and rental increases. I've thought long and hard about it, and talk with other local investors.

My conclusion is that it IS realistic for continued price and rental increases for a few reasons: no buildable land, increasing population, a booming tourism industry, foreign buyers paying cash well over market value, and one of the only places on the island with great beaches, decent schools, and a real hospital.

To test your theory, look at how your market performed 2007-2010. Mine dropped about 5-10% at most, but demand was still high.

I don't have extensive knowledge of that market, but I know a guy who tried a flip and lost a lot of money.

Good luck!

Aloha Ally!

A quick answer to your question: no (for me personally anyway), I would not buy a condo in that area. My goals might be different than yours though.

Condos in the Salt Lake/Moanalua area have lower appreciation rates than places like Waikiki, Gold Coast, Kailua, etc. But as you might know, there's a big housing shortage here and so 0-2% vacancy is a good assumption. I agree with you that HOA fees are high and only go up.

There's a caveat though - there's a new rail system under construction, and if you buy in the right area close to a rail stop, you might see a good bump in value.

Check out UHERO forecasts - they are predicting strong appreciation the next few years for SFH and condos. They are normally pretty accurate.

Forget the 1% and 2% rules, unless you buy in a desirable area near a beach (not Salt Lake or Moanalua) and plan on renting as a vacation rental. I know people that do this on Oahu (Ko Olina resort on the west side) as well as neighbor islands, and do very well. 1% is easily achievable.

Welcome! As you look into those investing strategies you talked about (flipping, etc), you'll probably find that profitable deals are hard to come across - but not impossible! Work hard and you'll find something that works.