Buying an investment property can be a daunting task for anyone, including a seasoned investor. Imagine how hard it would be for a novice investor. Buying an investment property here in Hawaii can be even tougher due to our tight real estate market and higher prices. But with higher prices come a few rewards. More on this later.
When you get ready to buy your first investment home you need to determine if you want to wholesale the property, flip the property, or keep it for long term rental income. It really all comes down to money and how you want to make it. If you just want to make a quick buck then wholesaling is your strategy. If you have the money or the investors to back you up then buying, fixing up and flipping is what you want. And if you are looking towards the future and your retirement then buying rental property is what you will be looking for. But there is another type of investing in property that most people don’t realize. And that is the home buyer who will only own one home at a time throughout their life time. They are making an investment in their future and their family. Dave Brilliant and Kona Ka’u Realty can help you find that investment home no matter what type of investor you are.
To wholesale a property you usually only need a moderate down payment or an investor because you intend to put it right back up on the market for sale at a higher price. You won’t find much in the way of wholesale properties here due to our tight real estate market. Homes sell fairly quickly here. And homes that are priced under their appraised or comparable value will be bought up very quickly by shrewd investors combing the MLS listings by the minute. The most active wholesalers are usually trying to work the distressed property list. Also, a larger number of wholesale properties are found on the outer islands. Dave Brilliant and Kona Ka’u Realty have personnel on Oahu and the Big Island to serve all your home investment needs.
If you have a team of contractors and investors then you will be buying a home that is in need of repair and then reselling it later. This type of home is easier to find due to the fact not all buyers of properties want a fixer upper. Most of the time these homes are selling for less than their appraised or comparable price. But you may be in competition with the first time home buyer who wants to do the work themselves. A lot of it depends on how much and what type of work needs to be done on the home. Finding the right home at the right price and making the correct offer on the home is the key to investing in this type of home. Dave Brilliant and Kona Ka’u Realty can help this type of investor obtain the properties they are looking for.
Looking towards your retirement? Wondering how are you going to be able to retire on just Social Security without additional income? Most people can’t. You need to have some additional income in order to retire and do so comfortably. An excellent investment vehicle is a rental home. A rental home can provide you with more than just additional passive income every month. Depending on your tax situation, a rental home can also allow you to deduct all or part of the depreciation on the home so you may pay little or no taxes on the income. Plus your renter is paying off your mortgage for you. This creates equity in your home. Also, in a strong real estate market, your rental home can appreciate in value. Which also creates equity in your home. This equity can be used to invest in another rental home through refinancing. And so on and so on. And one last thing, when you own rental properties you help businesses and their employees by using them to work on your properties. This keeps local dollars, local. This is the reward you reap when you invest in real estate here in Hawaii. Dave Brilliant and Kona Ka’u Realty can help you in adding to your retirement portfolio by finding rental homes in the Hawaii Real Estate Market.
Who is the biggest investor in Hawaii’s real estate market? The individual family. Most families don’t look at their home as an investment. But it most certainly is. As the family makes the payments the house gains equity. If the market is strong the equity is increased due to appreciation as well. But the biggest investment a family can make is in a home where they can make memories.
Dave Brilliant and Kona Ka’u Realty can help you to find your investment home. No matter what type of investor you are. Call us now at (808) 366-8714 and let’s get started looking immediately.
By Dave Brilliant