All Forum Posts by: Laine Furukawa

sorry, the previous link leads to the comments section.  Scroll up or click HERE for the article.

Hi,

I've recently read this:

"I commend property managers who creatively book homes for less than 30 days each month. Some people interpret the law that vacation rentals are prohibited if a client rents less than one full month. Many homeowner associations prohibit residents from renting out their houses or condos for less than one month, three months, or six months, but did you know that you do not have to rent out your home for the full 30 days to comply?

The law states that as long as you leave a 30-day window, you’re okay. So, unless your association specifically states you cannot have short-term tenants less than one month, you can rent your home for a short amount of time during a 30 day period. You can get around the short-term rental rules by making sure you don’t rent out 15 days before, or 15 days after your contract."

The context of the article is specific to Hawaii laws on short-term vacation rentals.  I also understand that I probably shouldn't believe everything I read on the internet and it would best serve me to consult the specific department (Land Use Ordinance) or a lawyer.

With that said, I'm still trying to wrap my head around this "15 days before or 15 days after" thing. I've seen airbnb listings post 14 night minimums and wondered how or why (assumed it was illegal as the other 95% of airbnb listings on Oahu).  If I'm getting this right, it's more on the assumption of a period or window of days rather than a specific amount of days rented.  So, if I rented 15 days and blocked off the next 15 days from being rented, then technically that would fulfill the 30 day period, but what if they rented, say, 20 days?  Would I just block off 10 more from being rented to make the 30 day period or would I still need to block another 15 days?  Has anyone heard of this?  Is this even legal?

Lastly, I understand the other factors that come into play with running a vacation rental legally in Hawaii.  GET, TAT, non-conforming use certificate (which hasn't been issued since 1989 but are transferrable through sale), permits needed for 30 days or less (TVU, BB, condotel, etc.), transient considered if less than 180 days.  I've done my due diligence and it's not to say that I'm going to do it.  I'm simply curious to this specific "hack" and if anyone has experience with this or can further elaborate on it.  Thank you in advance for your time!

Aloha,

Laine

Alfred Harding My name is laine and I'm looking @ possibly purchasing in koolina. Would you be willing to discuss your experience (hoa and state regulations for short term VR, zoning, etc)? I looked @ the numbers and occupancy rate and it seems like koolina would be a good investment. I'm was born and raised in Hawaii and currently moving back from California. Thank you in advance for your time! Aloha, Laine

Hi BP! Moving the family back to Oahu (Aiea) this summer and want to figure out a way to refinance and pull equity out of 4 Ohio investment properties I currently own. My goal is to incorporate the BRRRR method and use whatever money I can get from refinancing to purchase another investment property on Oahu. The problem is those Ohio properties were purchased with minimal work done to them as the intent was to immediately fill them with renters. It is highly unlikely that there has been any substantial equity or appreciation built up especially in that market (Dayton, Kettering, Centerville). All homes are currently rented and do bring in positive cash flow. I've owned them for a little over 6 months. All currently financed w/ conventional loans (20% down). Questions: 1. Is it possible to refinance and get back the money put down for each home at the very least (even with little to no built up equity)? 2. Would a blanket or commercial loan be of interest to my situation? 3. What would my options be (aside from selling altogether) if I did want to leverage the Ohio properties to allow another purchase in Oahu? (I'm fairly happy with the cash flow, but want to move forward in expanding my portfolio). 4. Does anyone recommend any local Hawaii portfolio or national lenders? 5. Would refinancing the Ohio properties essentially increase my cash flow in lowering my mortgage payments? I do also have close to 50k to add to whatever cash I can pull out and will be looking for a fixer upper to rehab and begin the BRRRR method. Thank you for your time and I look forward to connecting with more investors and gaining more knowledge on this journey to financial freedom! Shaka 🤙🏽 Laine

Dan D. Thank you for your response! Sorry for the delayed reply. I've had some time to look into it more and now starting to understand it a little better. I've recently purchased the properties (Ohio) about 6 months ago with little to no rehab done as they were purchased move-in ready to quickly fill with renters. This makes me believe there is little appreciation or equity built to pull out. Would it be a better option to refinance all 4 properties into one loan through a portfolio lender? I'm moving back to Hawaii and want to purchase another income property there as well as repeat after. I would be able to couple whatever I can pull out with another 50k. Thanks in advance! Aloha 🤙🏽

Hi BP Community!

I am an owner of 4 out of state investment properties. All acquired through conventional loans (20% down) and currently rented with a decent return (10% -/+). If wanting to incorporate the BRRRR method, would I essentially begin @ finding a lender for refinancing? It seems that you'd want to start with a purchase of a fixer-upper first, but what about properties purchased through 30 year conventional loans? Is it wise to refinance an already long-term mortgage (30yrs). How would that look and would that affect my current cash flow? It would only make sense to me if I could get close to all the money that I put down for all 4 properties. Thank you for your time in advance!

Shaka \000/

Hi Everyone,

First off, I'd like to thank and recognize those that chose to give their time in helping me. I'm new to the BP community as well as real estate investing.  I'm currently applying for a loan to have enough funds for an auction on a duplex that thankfully postponed to March 17th.  Like many auctions, this is cash only and sold 'as is'.  I'm wondering how one might do their due diligence on such a property and if there's cause for concern with such a situation.  Here's the property.  It does mention 'multiple possible judgements'.  Not sure what that even means?  Any advice or guidance would be appreciated as this would be my first time to an auction.  Thank you again.  Aloha \000/