All Forum Posts by: Kahanu Noa

Thanks @Kyle Keller

This was in Waimea/ Kamuela on Hawaii island.

Regarding short term rental, I think @Christian Cramer might be a better resource to answer your question at this time.

Investment Info:

Single-family residence other investment in Kamuela.

Purchase price: $130,000
Cash invested: $230,000
Sale price: $480,000

New Construction
Target buyer: First time home-owner in Hawaii
Sold at $480,000 when comps sold at $520,000

What made you interested in investing in this type of deal?

1) Utilizing personal experience from building my own home then helping family & friends navigate process of building their own homes to starting a development company.
2) New Construction at a price that a first time home buyer can afford and raise a family
3) Providing jobs and employment
4) Creating win-win situations
5) Working with family

How did you find this deal and how did you negotiate it?

MLS
Realtor placed offer for vacant lot

How did you finance this deal?

Cash, Partner and Commercial Line of Credit for Construction

How did you add value to the deal?

Deal
Finance
Project Management
Sale

What was the outcome?

Target Met
New SFR - Sold

Lessons learned? Challenges?

Pre-project planning is essential to mitigate issues.
Open communication between subcontractors and team members is necessary for growth of everyone

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Sure... please PM me

Justin

I have some experience like 4 properties and it has been great but not without challenges.  I think the situation you mentioned can be beneficial to both yourself and family members.  Prior to any project, alignment of vision along with personal/ business benefits of partnering should be discussed and written down so it can always be referenced when issues/ disagreements need to be addressed.

Communication is very important and if each of you understand that so much more can be accomplished together versus on your own then you're off to a great start.

Generally, it comes down to pre-project planning, funding and project management.  These items help to define roles.  Kuleana needs to be understood by each other too.

Not sure how you were planning to structure partnership but got several options:

Material vs labor

Subcontract

Create an entity together 

Hi BiggerPockets

Are there any deal analysis calculators for new construction that work well for others?

Or any BiggerPockets calculators that can be modified for such purposes.

Working on a few residential development projects in Hawaii, have done analysis but just want to cross T’s and dot I’s.

Thanks for reading

Aloha

Aloha @Zasha Smith

Your folks situation sounds identical to ours.  My wife and I ended up buying land Pukalani and doing new construction.  We were paying 2k a month rent for a 2bd 1ba.  

We ended up moving in with family for almost a year, began construction end of last year and moved in this past April.

A ton of lessons learned along the way.  As others mentioned the rehab costs/ cost to build is a huge factor in your numbers. 

The other huge factor is financing.  Met with 12 different lenders to find one that would fit our situation best.

Plan is to live-in and hold for now. PITI is $2800. We have 325k in equity.

Deciding if should prepay mortgage with it but will probably wait and keep eye on Market.

If can be of any help feel free to connect.  Haven’t been on BP in a while but it’s good to see more of us from Hawaii on.

Aloha

Aloha Jamie, I have a rental property in Waimea but currently live on Maui and doing new construction but more so as a live-in flip or hold depending on numbers. Let me know if I can help. a hui hou

@Duc Ong I Spoke with a PenFed loan officer and asked them to run calculations for both home equity loan and heloc given their specific rates, terms, fees, etc.  Basically, they have no costs unless they run an actual appraisal of the property.  No prepayment penalty as long as you keep account open for 2 years.  The monthly payment on the home equity loan was cheaper at $500/ month fixed for 12 years vs. 400/ month variable. 

Thanks for the feedback!

@Manly Souza  the last I checked with ASB they did it on owner-occupied homes.  I'll check again.

@Duc Ong right on, let me know if you find out anything more on bank of the west, I'll check them too. I did follow up at penfed, they will cover all closing costs except for the appraisal (if they actually run one on a property.) They will do up to 80%LTV max on non-owner. After I ran numbers, Penfed's home equity loan would work better than their HELOC for my situation.

@Jonathan J. Miller at this time it is more ideal to hold onto the property or use  @Brandon TurnerBRRR strategy

Any recommendations on reputable lenders that does home equity loans or HELOC on a non-owner occupied SFR?

LTV is currently at 63%. I would like to find a home equity loan or HELOC as opposed to a refi because rate is currently 3.5% and cash flows well. Still early in my search but I know PenFed will loan up to 80% LTV on non-owner occupied.

Would like to use money to buy raw land or another investment property and appreciate any feedback.  Thanks

Manly Souza Good to hear of your journey and how turned things around for yourself. Are you focusing primarily on buy and holds right now? What's next for you? Cory Nemoto You're active! Great to see others here taking action. Yes, I'll be on Oahu a few times this and next month so I'll touch base with and lets do coffee.