All Forum Posts by: Michael Borger

So a Section 8 tenant who escapes eviction for non-payment by the timing of the proclamation gets to live rent-free for 4 months, probably longer given the backlog that will face everyone wanting to process and serve an eviction when this is over. And if they really decide to be non-cooperative and not allow a landlord to verify condition or even show the property if trying to sell, then there's not much you can do about it.

@Sione Vave Firstly, trying to wholesale a listed house is difficult. You have to get it a discount low enough to still leave you room for a profit when selling to a buyer.....who has just as much access to the property as you do since it's on the public MLS. So you either need to be a master negotiator or very quick to lock it up. For example, if an investor would interested at 450k and you want to make 10k assigning it, then you need to get it in contract for 440k. The problem is that the buyer can just offer 450k without your assistance since it's open to the public. If the seller is looking at offers of 440k and 450k, of course they'll take the latter, all things being equal. Looking for off-market properties is definitely the way to go when wholesaling so you're the only person the seller is speaking with.

It's also usually a problem for agents who don't like to work with anyone but the intended buyer. Some agents might be ok with it, but they have resources invested in each listing and don't want to see it get tied up only to be conditional on your flipping the contract to someone else. That wastes their resources as well as their buyer's time.

Regarding the EMD, yes you generally need to put it in escrow first. Sometimes another deposit will be required or requested after the inspection period, but that would be an additional one to the first EMD you put dow.

Hi @David Valladares -- agreed, house hacking is a good way to get rolling, especially on the west side. Lots of people partition up homes, even if they're not actually multi-family. You'd be surprised (or not) of how creative people can be to get another 'unit' out of a property.

I'm not an expert on this, but if the property isn't already zoned for STR then you'll have to go through a re-zoning process which is going to take quite a bit of time. It's more than just applying to DPP for a permit to add a bathroom. This is changing the actual permitted USE of the building and it's my understanding that the general community - or at least an appointed board - will have to approve it in addition to other general local officials. You'll probably have public hearings.

If you're going to be doing a minimum of 30-day leases, then you should be ok. If not, which I assume, then start talking to an attorney about re-zoning or contact the appropriate official to understand the process.

Keep us updated on how it goes.

Welcome to the island REI scene, @Allan Kuaana - as your title mentions, you'll almost certainly be looking out of state given the local price points. Good luck - lots of markets to research and choose from.

Welcome to the island scene -- 1) figure out your buying criteria (don't just say "a deal"), 2) make sure you have your capital ready to go, 3) familiarize yourself with local renovation costs, and 4) talk to other investors (like you're doing here).

Drop me a message with any of the above info -- I usually do a few wholesales here and there over a given year.

Sure do - drop me a line with some specifics and I can probably connect you with someone who can help.

@Amanda Magwood It's treated me very well. I moved away about 5 years ago but still do a lot of flips. SFH, townhouse, condo - doesn't matter to me as long as the numbers work out. I don't hold onto anything there, though - rare to find something that cash flows.

@Nathan Gesner Just sounds like bad timing for you. I remember when that earthquake hit - I hopped on my bike and rode down to Waikiki to see all the tourists lined up at the ABC stores. My friends and I, though, just hung out and ate/drank up everything we had that would otherwise have gone bad - lots of people did the same and just rode it out. Also, there are no active volcanoes on Oahu where ~90% of the population lives. Sea level rise is a much bigger threat. 

@Nathan GesnerWhy do you think it's a 'disaster waiting to happen'?