Kauai Dreams Realty

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Our First Fix and Flip on Kauai

Here are more details on our first fix and flip property on Kauai. Did you miss our episode? See these upcoming airings on the DIY Channel http://www.diynetwork.com/shows/first-time-flippers/episodes/600/tropic-blunder

or Purchase on iTunes for $2.99. Search for First Time Flippers or episode “Tropic Blunder

Before the purchase:

This was the 4th attempt we made at purchasing a property on Kauai. My Mom and I missed out on 3 other properties prior. There were no fix and flipping plans for those other 3 that got away,  the original plan was to fix and rent. The other 3 were in better condition one home was in Wailua Houselots, the other near the ocean in Anahola and one home was in Kapaa.

BEFORE Photos

Dinning area looking to living room & front door

Kitchen

Living Room

 

Bedroom

First time Viewing:

The home has good bones this would be perfect for a fix and flip on Kauai, and the journey began. Good bones are so important, there is a bigger chance you can avoid any “surprises” with good bones. Everything in the home was original and had to be torn out. Someone already took out the flooring. This made things easy we didn’t have to decided what to keep or toss. We did decide to keep the jalousie windows and just replace the hardware.  Jalousie windows are not ideal for cleaning although they definitely let in more air. Not having to touch any beams or the foundation makes everything less complicated!

This fix and flip on is located in Hanapepe, Kauai on the west side of the island. This means the weather is dryer and less likely a chance for ground termites. Yay! There was no termite damage to this home. Most of the walls were built with red wood which termites do not like to eat. There was not any dry/wet rot to the home either.

There were a couple other benefits we seen to this property. The property was connected to sewer and the zoning allowed for an Additional Dwelling Unit (another home). There was plenty of space in the back yard for another home to be built.

Many homes on the west side of Kauai for sale are older and not upgraded. Most upgraded homes on the west side of Kauai will sell fairly quickly depending on the price.

AFTER Photos

Living Room to Kitchen

We made a peninsula

Bedroom

Bathroom

 

 

Dinning room to kitchen

After

The end product came out beautifully. The contractor put in a whole new kitchen with granite countertops, replaced all of the floors either tile or laminate, tiled both showers, replaced hardware on windows, added in some drywall and interior and exterior paint, replaced light/fan fixtures and vanities. We had a roofer replace some of the roof on the extension because that part of the roof was done with the wrong material. Added 2 steps in the extension and did some small electrical work.

We got this fixer upper home on Kauai for $285,000 and spent about $120,000 in renovations and sold the home for $515,000. My uncle and contractor Devin Caspillo with Painting Plus a Whole lot more did the renovations. My Mom and I ended up doing a 1031 exchange to defer the higher taxes and we ended up buying a home on the South Side of Kauai which we are renting out.

Here some quick tips for fixing and flipping a home on Kauai: 

~Factor in construction and material costs, these costs are normally higher in Hawaii. ~If you don’t have a contractor find one ahead of time. I’ve called several contractors to get an idea of timeframes and some had a 2 year wait list. ~Factor in costs of selling the property like taxes, realtor commissions, surveying. ~ Work with a real estate who is familiar with purchasing foreclosures and knowing where these type of flipping properties are. ~Consider doing a 1031 tax deferred exchange.

The next airing of our episode on the DIY channel will be Jan. 27th at 3pm Hawaii Time / 7pm Central Time & Jan. 28th at 10pm Hawaii Time / 2am Central Time.

 

 

 

 

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