As a realtor in Hawaii, I see many amazing investment opportunities come and go. And while I consider myself successful, it is very expensive and might not be the easiest investment market to break into. Like many other Native Hawaiians, I felt priced out of paradise for a long time. So when my partner and I had a good year, we knew it was time to pull the trigger and purchase something that we could make a return on. We had facilitated many deals in the past, but it would be our own personal purchase that brought the most challenges. We found a wonderful one-acre parcel in Captain Cook, on the Big Island of Hawaii. Captain Cook is known for its lush landscapes, coffee farms, and stunning views of the Pacific. The area offers a unique blend of rural charm and modern amenities, making it a desirable location for both living and investing. There were multiple homes on this property and rental potential everywhere. This home covered every base for us: there was a main home we could live in, a small apartment we could rent out, and a large house in the front we could also rent out. The escrow process was brutal. We hit every bump possible and almost lost the deal several times. It was very stressful and incredibly difficult. I now knew what some of my buyers had felt in their own hard escrows. But in the end, we were able to pull it off and finally own a sustainable property in our hometown. We knew this would be a great investment because we could always live in it if things went south. The rents cover most of the mortgage, and to this day, it remains an amazing investment. This experience not only gave us a valuable asset but also deepened my empathy for clients facing tough transactions. It was a lesson in perseverance and the importance of believing in the potential of a property, even when the journey to secure it is fraught with obstacles.
When I bought my home, I thought it was a great investment. I wanted to pay rent to myself rather than to a landlord, as I wouldn't get any of that money back. But I was wrong. Owning a home is much more expensive than I anticipated. Many costs weren't covered when I rented. The mortgage is significantly higher than renting, plus there are HOA fees, which are pretty expensive, and yearly taxes, especially if you live in California. The worst part is that for the first 5-10 years, most of the mortgage payments go to the bank, with only a tiny fraction going towards the principal. This means that only about 10% of my monthly payment goes into building equity in my home, with the rest going to the bank and other expenses. In hindsight, I would have saved more money by renting and either paying off the house all at once or putting down a bigger deposit to reduce the amount paid to the bank.