The Motley Fool Discussion Boards

Previous Page

Personal Finances / Buying or Selling a Home


Subject:  Re: Hawaiian rental housing market Date:  9/5/2013  12:08 PM
Author:  Dwdonhoff Number:  126194 of 128866

Hi Bill,

Unfortunately, she is currently renting some of the units to family and friends. She needs to decide whether she's going to be a "sound real estate investor" or a not-for-profit, charitable subsidized housing source for family and friends!
That may be a tough thing to do... it certainly can be tough *anywhere* to crack down (or ratchet up rents) on family & friends... but doing so in an island society, where social feedback reverberates, could be a higher hurddle than reasonable to scale for local mortals.

I re-double my suggestion to hire arm's length management... let someone unknown & unrelated become the heavy (and have the freedom to operate with dispassionate discipline, as well. Just playing it by the numbers.)

I've already decided (after consulting with a tax expert) that the like-kind exchange doesn't meet her needs. So, I'm waiting on a lending officer from one of the Hawaiian banks to get back to me with answers to a number of the questions I've posed on this board.
Being local is irrelevant with 1-4 unit residential financing... and (fair or not,) the island motivational culture is not all the snappy (in general, disclaimer-yadda-disclaimer... there are always exceptions.)

You *can* get the same rates & terms, and potentially faster & more attentive service, from a stateside broker or retail loan officer who funds in Hawaii. All the national retail lenders do.

Dave Donhoff
Leverage Planner
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us