All Forum Posts by: Royce Talbo

@Douglas Larson Yup still expensive and still going up hahaha.  Dont worry after you make your millions you can always come back to retire here.  I also like Maui and will either retire there or Kauai. 

Good job being creative and adding value to the property! 

@Pete Z. what type of condos do you invest in?

I owned one condo a while back, but nothing right now. My take on condos is that lower class areas with hollow tile construction or concrete construction is a good play. In C and D class areas the numbers work well for cash flow. There is low maint as there is usually no pool, bbq area, elevators, etc for these kind of properties. The other thing too is that tenants cant really destroy walls, floors (linoleum or tile), electrical, or plumbing, just fixtures vanities and cabinets. Sure if they try they could damage it, but from just neglect there is not much to worry about. Higher end condos have lots of amenities and there is always something management wants to update so maint fees are high and keep climbing. For buy and hold cashflow I would go with the low end condos, for appreciation If you cant afford a SFR then go for a higher end condo, but you would be at the mercy of management.

Wow great job man! 

@Tony Velez I wouldn't do it.  Yes it is easy and it is easy because they do all the work and take away most of the value.  Secondly all you will be doing is collecting a pay check and not really learning anything.  Everything should be good to go and you will not run into any problems but again how will you learn.  Another issue is how do you know which TK companies to trust if you are new and dont know what you are doing.  They could sell you something that seems good but after you get into it you learn that its not what it seems. 

My advice is to find a good realtor who deals with investment properties and then buy one within driving distance of your home.  Hire a property manager to get you started and watch how things work out.  After that try managing your own property to further your learning experience.  After all of this if you want to turn to TK because it is easier then at least you have the tools you need to know what is going on. 

@Reuven Cohen There is a lot of information missing to consider this info as good deals.  Like in the first picture the numbers mean nothing without knowing how much the properties would cost.  Also your second picture is not of Honolulu its of Big Island.  There is no way you could find a 4 bedroom for $500k that would rent for that much.  To get something like that you would have to triple the purchase price.  Also factoring in that majority of the tourist come to Oahu not Big Island I think you might have to lower your occupancy rating.  I think the purchase price and rent could work on BI, but not so sure of the other factors.  

I agree with you on that you can do it legally and it is profitable, but I just think your numbers are off.

@Charles Goodwin You are never too young to start. You might not be ready to start if your financials dont support it, but age has nothing to do with not being ready. If you feel like you might not be respected because this is your first and you are young, then hire a property manager for couple years. The tenants will deal with a professional and not think twice about you and you will get a feel of what its like to be a landlord. When calculating if the property is profitable you would have to account for a PM anyway. Sure you wont get as much cashflow but it will help you ease into REI.

@Sarah Lam LOL I was jokingly thinking that in my head this girl probably just wants to come to hawaii once a year and use the write off as an excuse ;)

Since you want to self manage I'm sure your realtor told you that you need a point of contact here, so if they are not willing to do it just ask one of your friends if they are willing to be listed as your point of contact and just have the tenants call you directly for anything they need.  Majority of the time though they will call the resident property manager and they will decide if they need to take care of it or for your tenants to call you.  Because this is a concrete condo you dont have to worry about so much should be an easy rental.  I would just make sure the fixtures, hoses and valves are newer so you dont have to worry about any leaks.  

Cool I thought the rate for an investment would be more around 4.5-5%.  What company did you go with?  Ewa is nice but the traffic going in and coming out of Ewa if you are going to town is crazy.  If you work in Kapolei (our up coming 2nd city) it is great.  

@Sarah Lam First off congrats on getting started with your first purchase what made you choose Hawaii if you live in SF?  Secondly Condos can be a great buy in Hawaii as they are cheaper entry point and less maint, if they are concrete.  If they are townhomes then they are not such a great deal and you should stay away.  Concrete condos have less to worry about because the Association takes car of the structure and everything in the walls everything in your unit is your responsibility to maintain.  Which leads to my next point I think you misunderstand what a condo property manager does based on you listing it with an ! .  They are there to manage the grounds and building maint.  Not dealing with finding you tenants, collecting rent, or broken fixtures.  If its a over flowing toilet they might check it out because it might be a clog in the pipes in the walls if not it is your responsibility.  

Since you listed your purchase price and other info do you mind filling us in on what rate you got and how much you put as a down?

I searched the MLS and I think I know which condo you are buying from the pics it looks in good shape. I'm assuming you are looking to rent to military, keep in mind the types of upgrades you are doing and how much their housing allowance is.

@Andrey Y. when you say 

"She has payed up until the day she moved out (1 week into a new month, she is supposed to be out by tomorrow at the latest)" does that mean she paid up until the first week of this month and she is living rent free now or she paid until the first of next month and is leaving early?

I have never had a tenant quit early only for military purposes which I returned their security deposit.  As for your situation this would fall under the to compensate for damages by a tenant that quits the dwelling unit.  I would think that if she is paid up till 1st week of next month there shouldn't be any damages to you as you could probably find someone to fill the unit by then.  If this is the case you should return her security deposit less any repairs you had to make.  Remember though that it has to be returned within 14 days and you have to itemize it or else they get back the full amount.  The other thing you should note is that if you wrongfully withhold a security deposit and they go after you for it they are allowed 3 times the amount.  As for the prorating part I am not too sure about as she is actually terminating early. 

If she is living rent free right now then it would fall under the To remedy tenant defaults for damages, for failure to pay rent or for failure to return keys at termination of the rental agreement.  This would allow you to withhold security deposit to compensate for your loss.