Author Archives: Aunty

About Aunty

Aunty is a new senior citizen and loving this phase of her life. Less responsibilities, less fear of being weird, able to do more of the things that I want to do! Older, yes, slower, yes, but life is even more wonderful in my golden years and I look forward to even goldener ones.

Aunty’s computer posture – fix!

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Aunty’s posture has been deteriorating – maybe because of entering the older lady phase of life, but maybe not.

TaiChi is helping with balance.  Still, poor posture from sitting hours at the computer watching Korean dramas, blogging, inputting into Quickbooks, google searching, checking emails, etc. etc. etc. was taking its toll.  Playing Kuku-Kube (thanks or No thanks to Jalna, lol) has really made Aunty sit transfixed for hours staring at computer screens.

Along comes a good AND EASY way to reverse and overcome poor posture with 3 simple to do exercises.

1.  Maintain a tight core while walking or standing.  Suck in that gut and keep your ears above your shoulders.  (This makes clothing look great on us – especially that lumpy looking part under the boobs and above the waist.)

2.  Backwards arm rolls with palms facing up.  This one will really feel foreign – we don’t ever use this motion or direction, but it works!

3.  Elbow pushing on a wall.  Something like isometrics (remember those?) but easier.  It is hard for Aunty to relax her neck, but Aunty will learn.

Thanks to the folks at Easy Health Options for this link to Dr. Brett Cardonick’s video demonstrating the exercises:

Look good, feel good!  Or is it the other way around?

Make you KuKu

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One of Aunty’s favorite daily escapes is going over to Jalna’s blog and seeing wassup.  (see? Aunty can do hip talk too!)

Jalna’s latest is about her score on a game that Aunty got hooked on for the last hour or so, as evidenced by an overworked right hand and mouse and for some odd reason, a very exhausted and sore left arm.

It is called kuku kube – a game of color – lasting exactly 1 minute long, though it seems much faster.  You get a point for each correct choice, and wrong choices do not count against you.  Jalna’s score was 38, which Aunty considers super duper especially since Aunty’s initial scores were 24, 26, 27, 24.

Twice, Aunty reached an almost zen-like state of seeing what is different, and then scored much higher.

OMMMMMM to you!

Ahlin’s Thai Spicy Sauce

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Aunty’s friend Ahlin is a terrific cook.  Sometimes she makes Thai green curry, Pad Thai, green papaya salad, unreal pork chops, etc.  All unreal delicious.  What makes it all even better is that she shows Aunty how to cook, several times.

Since Aunty is a slow learner in the kitchen (actually, Aunty is a take out queen of the highest degree), a video was made, and Joe Young at the Apple Store taught Aunty how to edit it with iMovie on her iPhone.  Mahalo to Ahlin and Joe – after you make this sauce for yourself, you will be SO happy, especially your happy mouth and taste buds!

Ahlin’s Thai Spicy Sauce

About 3 or 4 cloves of garlic, minced
1 or 2 fresh Hawaiian chilis, minced
3 TBS rice vinegar
5 TBS fish sauce
1 TBS brown sugar
fresh lemon, to taste

Mince garlic and chilis, add to a dish or bowl.
Combine rice vinegar, fish sauce, and brown sugar in a small sauce pot.
Heat up the mixture (do not boil) until the sugar is dissolved.  Taste and adjust.
Add the hot liquid mixture into the bowl with the garlic/chili.  Stir.
Add lemon juice to taste.

This sauce is amazing over noodles, fried rice, meats, fish, etc.

Store in an airtight jar in the refrigerator, and enjoy, enjoy, enjoy!

Sharing

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kokeshiAunty is the type of person that holds everything in.  It was how I was raised, and it has served me well thus far.  Maintaining pride, avoiding shame, putting on a smiling face that says that everything is alright.  Very Japanese.  My ancestors would be proud of me.

This tradition and upbringing has been Aunty’s cloak of invisibility and comfort.  This has been possible because of the undeniable Universal Truth:  All things shall pass.  This is true for the best things in our lives as well as the worst things in our lives.

Crap, the worst of them, comes and goes in our lives.  It surely does come, and then it passes.  Sometimes, though, it stays for a long long time.  Sometimes it stays because we hold on to it (see post on what are you holding on to?)  Sometimes it is almost too heavy to bear and it consumes us.

A post by one of Aunty’s favorite bloggers, James Altchuler, talked about letting it go, letting it out, and not caring about what others think or say about who he is or what he did or didn’t do.  It gives him release, and a sense of peace.

Right now, there is a huge pile of crap on Aunty’s shoulders.  In fact, it is crap on top of crap.

Will my traditional upbringing silence the turmoil inside, or will Aunty share by spilling the beans to relieve the burden?

Time will tell.  Time will tell.

Update:  This post was written 2 years ago during a time when there was so much drama, trauma, and turmoil in Aunty’s life from many different directions and sources.  It was like standing on a spot with a storm raging all around.  Pal Margaret also felt that analogy – when a huge mountain of debt/secrets/commitments almost consumed her and then she received advice that settled her down.  Margaret shared her dilemma which led to a very happy solution. 

Aunty did spill some beans to some people, though not all the beans and not to everyone. It was good to share and have friends and family to talk to.  She slipped from her Japanese pedestal, but it was an ancestral tradition that was too lofty and cumbersome.

One important point that Aunty would like to stress is to realize that you are standing on a grounded spot at all times.  The storm that may be swirling all about is not you.  It is a storm, and storms pass.  The spot that you are standing on is who you are.  It is a good place to be.

What are you holding on to?

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frazzledThis was originally written 2 years ago and not posted until today, in concurrence with Aunty’s “Sharing” post.

During the 8th session with Dr. Hana Yin at Brain Fitness Hawaii (no longer in business), something popped into Aunty’s consciousness.

It started with a question:  What are you holding on to?

For Aunty, it was anger and resentment, holding on to bad memories, recalling of upsetting words spoken, and ill feelings.  This led to continuous anger and resentment, without end.

We have been told to count our blessings.  To tell you the truth, that doesn’t work for Aunty, not when she is pissed off.  Recalling good stuff was overcome with the recollection of the bad incidences – along with its bitter bile.  Unwanted, but THERE.  Like having your worst acquaintance strapped onto your back all day long.  Yuck.

Aunty was holding on to some pretty junk stuff, and it was time to just let it go.

How do you do that?  Aunty posted one on “Sharing” (but being Japanese makes that kinda hard to do).  Another post was “No get huhu”, and another on “Make like a tree and…”

Some people take drugs, go to therapy, meditate, find a life coach.  Doesn’t matter what you do, but the first step is to realize what you are holding on to.  If it is crap, get rid of it.

Aunty is working on it.  It is good to let it go.

Aunty goes to Court – 2 Strikes and a Walk

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IMG_0629Hawaii’s courtrooms are very beautiful with a lot of quality wood on the walls, long gorgeous church-like pews, paneled dividers, and the dominating elevated judge’s bench.

Two months ago, Aunty received a subpoena as a witness to appear in court for a hit and sleep (girl fell asleep and her drifting car clipped Aunty’s parked car and nearly totaled the neighbor’s car) 3 years ago at 3:00 in the morning.  Even though Aunty didn’t see what happened, the prosecution wanted a witness because they were finally able to serve the girl.

After a brief wait in the hallway, Aunty was released without even having to step foot in the courtroom.  For Aunty, this was a big disappointment because court proceedings are quite entertaining in a very local way.  “Aw shucks,” Aunty thought, “I wish I could go to court.”

Beware of what you wish for

Two weeks later, Aunty gets pulled over by a police officer for failing to yield to a pedestrian in a crosswalk.  It required a mandatory court appearance.  Oh-oh, sometimes getting one’s wishes isn’t so good.  However, Aunty believed that she had a good chance of beating the rap because the slow walking little old lady with the maroon and white umbrella crossing the street was not on Aunty’s half of the road as the right turn was completed, even if the police officer who was also turning right just behind Aunty at the intersection of 6th and Waialae said she was.

Aunty’s court date was set one month later at 8:30 am (so early!) on the 4th floor of the District Court at 1111 Alakea Street.  Aunty left the house at 8:00, ran into some pretty bad traffic, and was already late by the time a parking space was found at the Alii Place on Alakea Street.  [helpful note:  This parking lot is just after the Mandalay Restaurant (with their fantastic look fun noodles with shrimp and lobster sauce, slurp, slurp) on the block before the District Court building and has the cheapest parking in Downtown – 75¢/half hour.]

The doors to Courtroom 4A were closed but not locked, and Aunty slinked in.  The room was only half full with other traffic violators.  A bailiff, judge, and court reporter were the only officials there.  No police officer to point out and identify Aunty.  The judge was a woman who appeared to be fair and had a nice haircut.  She would always ask if the defendant had any prior tickets.  It was rather dumb to lie about ticket history because the judge had a computer that had all the info that she needed about the person in front of her.  When they didn’t tell the truth, she found them guilty and threw the book at them.

Admit or contest

By the time Aunty was called up, the room was almost cleared out.  Most of the previous cases were HOV lane violations and the judge zipped through them, usually fining them a small fee.

The case just before Aunty’s was very similar to hers – a woman was turning left with the green light and instead of yielding to some pedestrians that were crossing and almost at the median strip dividing the street (Kalanianaole Highway and Keahole near Roy’s), she figured that she had the right to go since they would stop walking at the median strip.  She even had pictures of the intersection and read out loud the definition in the Hawaii Revised Statutes of section 291C-72(a)(2) about pedestrian’s right of way in crosswalks.  This statute stated that drivers must yield to pedestrians if they are on the driver’s half of the roadway.  The woman said that they were not on her side.  The judge pointed out that it also applies if the intention of the pedestrian is to step over the line and by proceeding through the intersection, the driver could put them in danger.  Oops.

The woman contested and the judge asked if she had any prior traffic tickets, to which she said yes.  She was fined $150 plus $40 admin fees and $7 driver education fees.  This will probably also affect her auto insurance rates since it is a moving violation.  Ouch.

Aunty up to bat

Aunty gave her name when asked and smiled, again thinking that she had a really nice haircut, and the judge smiled back.  She read off the infraction and asked, “Admit or contest?”

With this judge, honesty and humility was the best policy.  Aunty replied that after hearing the former interpretation of the statute about the pedestrian’s intention to enter the driver’s half of the road, Aunty should admit rather than contest the ticket.  The judge helped Aunty out a bit and said to contest and tell my story.

Aunty did.  The judge then asked about prior tickets (Aunty’s other at bats), and Aunty admitted to a few when Aunty was WAY younger.  She smiled again and said that she was dismissing Aunty’s case because of no recent priors, and gave instead a warning, which she said the officer should have done instead of a ticket.

Booyah!!  No fines, no moving violation, Aunty scored a walk to first base!!!  Very different from the previous times of being in front of a judge.

GhiaAunty’s other at bats, Strike 1

Back when Aunty was really really young and still in college, Aunty was cute and sassy in her spiffy little Karmann Ghia.  One morning while zooming down 10th Avenue in Palolo, a bunch of kids were hanging around one of the blocks with a police officer, and as Aunty kept zooming, the kids started jumping up and down and clapping as the police officer signaled her over to the side of the road.  Oh oh.  Busted for speeding.  Rats!

Back then, we could contest the ticket by returning it in the mail and request a court date.  Then, we could request a later court date, kind of like kicking the can down the road.  Aunty kicked as far down as possible so that time would dull the memory of the police officer.

Aunty would usually wear tight low waisted jeans and hippy tops with long straight hair, center parted.  On the day of the court appearance, months after receiving her speeding ticket, Aunty pulled her long hair into a ponytail, wore a baggy but pretty red and white voile long muumuu, and glasses.

The plan was simple and one dimensional.  If the police officer could not identify Aunty as the defendant, the case would be dismissed.

After Aunty pleaded not guilty, the prosecution called up the police officer.  He was asked to identify and point out Aunty, WHICH HE DID!  Oh no, oh no, oh no!!  That was Aunty’s one and only wiggle out strategy!  After a brief question and answer period of the officer testifying to the events of the crime, Aunty was allowed to cross examine.

In the most lawyerly demeanor that Aunty could summon, the officer was asked HOW, after so many months had gone by, HOW could he remember and still identify Aunty?

His response was, “You are so attractive, I could not forget you.”

The judge and everyone in the courtroom busted out in laughter and I stood shocked and red faced with absolutely no defense left.  The judge then asked what I had to say to that, and all I could say, in a very soft voice was, “Thank you.”

What else could be said or done?  Aunty was sentenced with a small fine and mandatory attendance to the State’s Drivers Education course.

Strike 2

A couple of years later, still in college and still driving her cute little Karmann Ghia, Aunty crossed an intersection on 10th Avenue and Pahoa after stopping and then heard metal screeching on pavement as a motorcycle riding police officer skidded and fell sideways with his bike to avoid hitting Aunty’s Ghia.  Yikes!  Where had he come from?  Rats!!!  Double Rats!!!

Slowly, very slowly, Aunty kept inching along on 10th Avenue hoping that what had just happened didn’t happen and that the police officer was okay.

Well, he was okay because he had soon gotten up on his bike and was quickly on Aunty’s tail, signaling Aunty to stop.

“Sorry, so sorry,” was all that Aunty could say to the rather ticked off policeman.  “Are you okay?” Aunty lamely asked.

After a few choice words and a bit of scolding for running away, Aunty was presented with a ticket – failure to yield to oncoming traffic.  No mention of almost killing a police officer or of him falling off his bike or of the very slow speed getaway attempt.

This time, Aunty didn’t kick the can down the road and went to court on the day of the ticket summons sick with fear.  The judge was stern looking and very business-like.  He would boom out his verdict, declare the fines, and pound his gavel with no nonsense finality.

When it was Aunty’s turn to declare guilty, not guilty, or no contest, Aunty said, “It depends on how much it will cost if I plead guilty.”  Aunty wasn’t sure if she would be charged an arm and a leg and a motorcycle repair bill, and was already in credit card and doodad debt to her eyeballs.

The stern looking judge glared at Aunty and said that Aunty would have to plead guilty to find out how much the fine would be.

“Will it be a lot of money?” Aunty asked, pitifully.

Again, the judge said that Aunty would have to plead guilty first.

“Well, Your Honor, will it be hundreds of dollars or not too many dollars?” Aunty pressed as people in the courtroom started to giggle.

In frustration, the judge said that he could not tell me the fine amount until after I pleaded guilty.

“So, Your Honor, you already know how much it will be if I plead guilty, right?”

“Yes,” said the judge.

“Then, Your Honor, can you please give me a hint?  High? or Low?  Not too much?”

By this time, everyone in the courtroom was chuckling and the judge looked less stern.  He raised his eyebrows in resignation, and in a low whisper said, “Not too much.”

“Okay then, GUILTY!” declared Aunty with hands up in the air.

“$70!” pronounced the judge as he banged his gavel down and Aunty clapped as others in the courtroom also clapped.

Lessons learned

Looking back, Aunty’s 2 strikes were actually fun.  They were from another era.  Aunty no longer has her cute little Karmann Ghia and instead drives a car for comfort instead of looks.  Aunty is now Aunty – an old lady to young people.   The police officers of today are all so much younger than Aunty without any common ground such as “What school you went?”

Before, the lesson used to be – Don’t get caught.  If you do, then try weasel out somehow (though you can tell that never worked for Aunty before).

Now, the lesson is – Don’t do it.  Easier said than done, but Aunty is trying.  And sometimes, being an old lady helps in a courtroom if the judge is kind and you can make her smile.

 

 

 

 

 

 

 

 

Style Book app

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stylebook

2 weeks ago, at Michael Mazzella‘s free Jam session on real estate flipping in Hawaii, Aunty saw Margaret, a fellow real estate investor friend.  We did a bit of girl talk chat after the session and Aunty mentioned Marie Kondo’s book, “The Life Changing Magic of Tidying” and how it was truly changing Aunty’s life.  (Post to come, one day soon.)

Well, Margaret went home, downloaded the book and took to it like a kid in a candy store.  She emailed her excitement about it, suggested that we do lunch, and we arranged the meet up.

We had a mid morning breakfast today and played catch up on people that we knew, classes that we had taken, and what we had been and were now currently doing in our lives.

Margaret is a fashionista.  I can just imagine how many closets of clothing, shoes, bags, and accessories she has – all in festive happy colors and textures.  She said that we were destined to meet at Michael’s session because of Marie Kondo’s book.  She wanted to share an app with Aunty – Stylebook by left brain/right brain LLC.  It is not a free app (Aunty’s favorite kind) but it is actually worth every penny and more of its $3.99 price tag.

Margaret showed me her wardrobe, categorized by types such as tops, bottoms, scarves, bags, shoes, etc.  Categories of categories can also be determined.  This will allow you to see your entire closet on your iPad or iPhone!  She would then “make” outfits by starting off with a focal point such as a crinkly blouse, then adding different elements such as a pair of striped leggings, see through long vest, boots, and a sassy scarf.  Each outfit can be named and saved, as well as be changed out with a touch and swipe of the finger and then saved as.

This is a great app for travel packing.  Aunty tends to pack heavy and doesn’t even use half of the clothing taken on trips.  With this app, each day’s outfit can be determined and pieces picked out from anywhere and anytime in advance. Day to day, from head to toe, then sorted into a list so it becomes an easy task to put only those items into the suitcase and feel confident that there is just the right amount of clothing for the trip.

The most time consuming part is taking photos (with the iPhone or iPad) of each piece of clothing.  Each item is laid out flat on a solid colored sheet or background, then edited with a few tools so only the item is displayed, like a cut out.  In fact, it reminds Aunty of paper dolls (remember those?) with each outfit cut out carefully and then attached to the doll’s silhouette.

This app will be even more fantastic AFTER doing the tidying exercises in Marie Kondo’s book.  Whittle down all the items in your closet and drawers to only what you want to keep, then take pictures of them.  Or, do your tidying choices DURING the photo taking for the app!  As you put together your outfits, it may become clearer as to what is missing, and that can lead to a justifiable trip to your favorite clothing store!  (You can also take photos of clothing items at stores and see how they will work out with your existing closet before committing to buying something that you may or may not need.)

The Stylebook website is very helpful, with photo tips, notes, sharing, even online shopping (that could be dangerous).

Aunty can tell – that this is the start of a beautiful concurrence of a tidying theory and an organizational practice.  Aunty can’t wait to play paper dolls again, with real clothes from her soon-to-be tidy closet!

How much internet speed do you need?

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rabbit earsAunty gets confused whenever computer/internet numbers are spouted for gigabytes of space, ram, speed, etc.  We currently have Oceanic Time Warner for our cable/internet connection and occasionally use our iPhone’s internet connection when Oceanic’s system acts up (quite often).

Sometimes, Oceanic sends our flyers about getting more speed, for free, and even more, for a few dollars more each month.  Currently, we get 50 Mbps, whatever that means.  Is that enough, just right, or too much?  That’s what Aunty would like to know.

Amy Lynn Andrews’ Useletter had a handy tool that she shared recently.  How Much Internet Speed Do I Need is a website link that will gauge your speed needs by asking a series of questions (i.e. number of computers, how often you stream videos, etc.), and then take you to a page with the internet providers close to you.  Aunty found this website to be very helpful (we need 21 Mbps, whatever that means) but the list of providers is not complete since only Oceanic and Hughes were listed, and Hawaiian Tel wasn’t.

Well, I suppose it is good to know that Aunty has enough speed, though sometimes, while watching Korean dramas on dramafever.com, it seems to take forever to load, and the WIFI setting option on Aunty’s iPhone becomes like a reset bomb that gets the ball (drama) rolling on a temporary basis.

Life was simpler with a tv set and rabbit ears antennae.  Simpler, but far less choices.  Progress is wonderful, but Aunty thinks nostalgically of watching television together with the family, and being the one who had to act like the “grounder” for the antennae so our reception had less snow and rolling screen.

Nostalgia for things that were inconvenient – HA!  On second thought, bring on the high speed and modern day wonders of today.  Bring on the self driving cars that will pick up Aunty’s Taco Bell food orders and run errands for her.

Life in the fast lane is quite marvelous.  We are living in a futuristic world.  We are becoming the Jetsons.

 

Buying a piece of Ala Moana Hotel

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2015-10-12_21-01-08Aunty used to go to a lot of marketing events at the Ala Moana Hotel, parking at Ala Moana Center by Macy’s, which was a no-no but everyone did it without any hassle.  From there, a short walk up a ramp took us into the ballroom section of the hotel.

Rumours Night Club just off the lobby is a hoot!  Aunty is not into the nightclub scene but decided to join some friends years ago during the happy hour.  We had pupus and cheap drinks and the place was packed with gyrating, happy dancing hipsters.  Old hipsters.  Even some really old hipsters dancing and enjoying themselves in the dance cages until the clock struck 9:30, when it changes over to a swinging place for young people.

Besides Rumours, the pool bar, some good restaurants and hotel amenities, the Ala Moana Hotel is such a convenient place, right smack next to the Ala Moana Shopping Center and the Ala Moana Pacific Center where Salon 808 and Aunty’s former hairdresser Quyan are housed.  The hotel always seems busy and vibrant.  The lobby is open, bright and clean.  Various airline crews are there for their layovers because prices are reasonable and access is easy.  This hotel is out of the hustle and bustle of Waikiki and neighbor island locals like it.  The entire hotel is smoke free and the property is fee simple (as opposed to leasehold).

About 10 years ago, this hotel was condo converted and employees were given the first option to buy.  Units began selling for $85,000 and up.  Current prices range from $145,000 up to $498,000, depending on size (246 sq ft – 559 sq ft) and desirability of individual units.  AOAO (building association) fees run from $794 – $1130/month and property taxes range from $174 – $259/month.

One could choose to live here part (or all) of the time and rent out the rooms the rest of the time.  This could be done by managing your own rental – finding tenants, collecting rents and fees, cleaning on a regular basis, maintaining the unit up to hotel standards and conformity.  Or, you could find a property management company and arrange for them to do all the work for fees ranging from 15-40%.   Joining the hotel management pool would be the easiest option – though at a cost of 50% of rental income and 10% management fee.  The term of rental agreement is for 5 years with initiation fees of $400.  Even with these high hotel management costs, Aunty heard that the cash flow is good.

Testing waters

Aunty contacted Noreen Ho, her mortgage broker who also is a real estate agent about buying a unit.  Noreen is hard working, very knowledgeable, and easy to work with.  Within minutes, Aunty had a list of 48 units currently for sale.  That is a lot of units for sale, but it is a big hotel with 1100 rooms/suites.  She also gathered rent rolls for the units that were potential purchases.  They all cash flowed!

Why would people sell their units if it is so convenient, well maintained, well run, and cash flows?  Seller disclosures do not reveal any negatives, so it is a curiosity as to their reasons, and Aunty wades in cautiously.

The visit

lobbyNoreen met Aunty at the hotel’s front desk and received a pre-arranged one hour pass to see 2 units of interest.  The lobby was busy with a line of people waiting to be registered.  We were informed that the hotel was sold out for the day, and that it has been a very good and busy year for bookings.

A very nice bellhop stopped to chat with us and we discovered that overnight parking at the adjoining Ala Moana Center was not allowed because the parking was closed after hours and re-opened at 5:00 in the morning.  Hotel guests needing parking are charged $20 per day for basement parking or $25 per day for valet parking.  Metered parking around the streets were also available, though on a first come first served basis and subject to feeding the meters during the day.  Residents of the hotel can purchase parking passes at a discount.

Just around the corner from the front desk is the real estate office of Jack Tyrell & Company.  We picked up a handy info sheet that he provides with all active listings in the hotel as well as recently sold units.  As of 10/11/2015, 44 units were available for sale and 35 units had sold in the last 6 months.  Jack Tyrell is the listing agent for approximately 25% of the current units for sale.  On a subsequent visit, Aunty dropped in and had the great pleasure of meeting Julie – super nice lady and so helpful.

Days on market of current listings range from a few days to 300 days.  Units are not flying out the door, but they are selling at an average rate of 6 per month with new listings at the same rate.

Touch and feel to decide

It was good to see the hotel and walk the halls.  It is not luxurious but it is very pretty.  The hotel card key is required in the elevators to access the different floors for security.  The elevators are clean and bright.  The hallways are clean.  An ice machine and drink vending machine are located close to the elevators.

Waikiki Tower, Unit #1

lanai 1701The first unit we looked at was in the Waikiki Tower on the 17th floor close to the elevator, with a lanai overlooking the Ala Moana Center parking lot.  This was rather nice – being high up meant a wider view with a sense of privacy.  The view from the tiny lanai was of downtown Honolulu and Ewa side, with a number of construction cranes in Kakaako – evidence of the condo building boom that is overtaking the area.

The room was a mess because it was recently vacated and not yet cleaned for the next guest checking in.  Still, it felt pleasant.  The entire hotel was going through renovations, floor by floor, and this room had brand new carpets and clean neutral walls.  The furnishings and built ins were of good hotel caliber, the bathroom was decent and average.  It was 297 sq ft and priced at $177,000.  We were in contract (in escrow to buy) at the asking price.

1701Rent rolls were pretty good, to Aunty.  (note:  Aunty has been advised in the past by several real estate “gurus” in Hawaii that there are far better deals than the ones we were considering and then bought.  However, time and cash flow has been kind to us, even though we did not follow the “gurus” advice.)  In 2014, revenues for the room totaled $46,690.25 with deductions and expenses of $37,854, resulting in net annual income of $8,836.25.  The majority of the expenses was the 60% (yikes!)  to the hotel pool management.  It was vacant for 75 days last year.

To most seasoned investors, these are not great numbers.  In fact, they might even say that they are poor numbers resulting with a ROI (return on investment) of 5.13%.  (Revenue of $8836.25 divided by cash investment of $172,000 = ROI of 5.13%)

Real estate pros and gurus usually will not settle for less than 8% ROI.

Waikiki Tower, Unit #2

2126 kitchenThe second unit was on the 21st floor, a 1 bedroom suite on the Atkinson side of the building.  It was very very nice and looked brand new.  The “parlor” had an almost full wall kitchen with even a small undercounter dishwasher.  A new comfy sofa could be pulled out to be a bed.  The parlor could be closed off for privacy from the rest of the unit which consisted of a good sized bathroom and a bedroom with a building corner lanai.

The view was less than nice – unless seeing the messiness of Kapiolani Boulevard, ugly buildings, and street traffic is your cup of tea.  The view of the Convention Center did look nice, along with a peek between the Yacht Harbor Towers and the YMCA, revealing the charming boat harbor fronting the Hawaii Prince Hotel.  This charming peek will soon disappear once the new owner of the YMCA property commences construction and builds their planned high rise.  The lanai was also very breezy – too breezy for Aunty’s dry eyeballs and fly away hair.

This unit was priced at $345,000 and felt spacious with its 503 square feet of living area.  This unit is not in high demand in the rental pool because it costs more for guests to book ($259 per night for this suite vs $149 per night for the studio rooms).  In 2014, it was vacant 110 days.  Still, it did manage to cash flow (actually almost anything will cash flow if the unit is bought with cash) at $8346.60, slightly less than the same net annual income as Unit #1.  The ROI was rather sad in comparison, a piddly 2.4% (revenue of $8246.60 divided by cash investment of $345,000 = ROI of 2.4%).

Kona Tower side

Noreen and I were curious about the Kona Tower units.  These were the smallest units – studios with 246 square feet of living space, no lanais.  Units in this Tower have the lowest sales price and lack of scenic view.  They also have the lowest booking prices for guests.  This should make it cash flow better than units in the Waikiki Tower since they would be the first to be booked by travelers looking for hotel deals.

We accessed from the left side of the lobby area, through a corrider and past the Business Center by following some tourists into the elevator and exiting on the 7th floor. There are only 13 stories on the Kona side.  Rooms are numbered from 33 to 63, with #48 corner unit rooms facing downtown/Ewa and #49 unit rooms facing Ala Moana Center and the ocean.  These corner units may seem appealing (we did not go in to see them) but they are at the farthest point from the hotel elevators, 14 rooms down from the ice machine/elevator junction.  The hallways in the Kona Towers seem narrow and the ambience of the lighting and walls make it feel motel-like.

Based on rent rolls that Noreen secured for one of the units on the 13th floor, the 2014 ROI for this $170,000 246 sq ft studio was 4.35% (revenue of $7404.95 ÷ $170,000 = ROI of 4.35%).  It was vacant for 65 days in 2014.  The lowest list price of $145,000 was for a studio unit in the Kona Tower.

Analysis

Experts and investors will probably judge these as not great investments.  Even the employees of the Ala Moana Hotel that bought in years ago when it was first offered for sale in the condo conversion have not been thrilled with their purchase as an investment.

There are factors that are out of our control which could negatively affect the cash flow – low occupancy, repairs that cause vacancies due to being out of order, renovations, rising management costs, downturn in the economy, disasters.

If a unit can be purchased for a lower price and occupancy rises, the ROI increases.  If the hotel becomes more desirable to investors, the sales price could appreciate and a tidy profit could be made in the future.

Financing as an option

If an investor does not have the cash for the entire purchase, Finance Factors will provide up to 60% of value as an investor loan.  The current rate is 4-4.5%.  Securing financing for these will add a monthly expense in the mix, dropping the amount of cash flow.

Running the numbers for Waikiki Tower unit #1:  the purchase price of $172,000 and annual net cash flow of $8836.20:

a 4.5% loan on $103,200 (60% of purchase price) will result in mortgage of $523.  $523 x 12 months = $6276

Cash flow is reduced by the monthly payments to the bank, resulting in annual net cash flow of $2560.25

ROI is now 3.72% because the annual cash flow of $2560.25 is divided by the cash investment portion of $68,800 (the rest is from the bank loan).  It seems like the numbers got worse BUT the amount of cash that is invested is much less, and it is still providing cash flow.

Running numbers for Waikiki Tower unit #2: the purchase price of $345,000 and annual net cash flow of $8246.60:

a 4.5% loan on $207,000 (60% of purchase price) will result in monthly mortgage of $1048.84.  $1048.84 x 12 months = $12,586.06

Cash flow is reduced by the mortgage payment, resulting in a negative annual net cash flow of -$4339.46.

ROI is now negative – not a good idea, BUT it may become one if it can be sold for a higher price in the near future, occupancy increases, you want a second home to live in, or you want a piece of the sky in paradise.

Jumping in

Aunty has a talent for losing money.  Stocks are bought and watched as they slide down in price with little bumps up and bigger dips lower.  Poker hands are won and then lost in going “all-in”, but it is amongst friends and only $5 for the buy-in.  Get rich quick seminars cost a lot and leave Aunty with an empty purse, apprehension and not quickly rich.  Fads and network marketing opportunities create a whirlwind of frenzy and high hopes, leaving Aunty with a stash of products, a lot of potluck parties and then later, tired and unmotivated.

Regardless of Aunty’s other losing ventures, real estate that can cash flow is like a hen that always has value because of the constant flow of hen eggs to feed the family.  Some hens drop a lot of eggs, some drop a few eggs.  Some turn out to be turkeys that need to be prettied up and sold.

Aunty thinks that the Ala Moana Hotel has been a pretty sleeping turkey that is turning into a egg laying chicken so she is jumping in to complete the deal of unit #1.

Why?

It is one of only a few condo/hotels that operate like hotels in Hawaii and it happens to be in a super location.

It has just gone through renovations so it looks and smells great.

It is busy, beautiful, well run and well maintained.

It is affordable, especially compared to the new condos that are coming up that cost several times more, or houses in Hawaii.  Prices have been increasing, but at a snail’s pace.

It is fee simple.  Leasehold properties (only Hawaii seems to have these) have lease expirations and potential increases in fees and are not as desirable as fee simple properties especially when you are ready to sell.

It cash flows.  Even at 2%, it beats Aunty’s stock market gambles or money in a savings account.  It will cash flow even better if vacancy rates keep improving.

It has all the advantages of real estate rentals (depreciation, expenses to offset income, income producing asset) as well as the potential for value appreciation.

Owners have the option to live in it part or all of the year and have rent revenue for the times that you are not there.

If it doesn’t work out, it can be sold.

Why are they being sold?

Perhaps the sellers want better results or have found something better to buy or invest in.  Perhaps they went to Rumours Club on a bad day and at the wrong time.

Whatever the reasons, Aunty is glad to have the opportunity to try her hand at the Ala Moana Hotel by owning a piece of its sky.

Steps to take

1.  Ask your realtor to pull up a list of all units for sale at the hotel.  Or drop by the brochure rack fronting Jack Tyrell’s office and get a handy printed list of all units available for sale in order of prices, lowest to highest.

2.  Ask your realtor to get rent rolls for the units that you are interested in so that you can run the ROI numbers.  Have them arrange a showing with the hotel and view prospective units.

3.  Submit your bids with an earnest money deposit check and cross your fingers.  Most of the time you will be countered with a higher price by the seller and it is up to you to accept, counter back, or decline.

4.  If your bid is accepted, do a happy dance, start the escrow process with the designated title company, then go on the eHawaii.gov website to register a business in Hawaii (or visit the DCCA office).  It can be a sole proprietorship, LLC, partnership, etc.  (note to Aunty:  do a post about starting a business in Hawaii.)  When registering for a business license for rental income from a hotel, you will need to apply for your GET  and TA (temporary acommodations) license.  The NAICS # is 721199.

5.  Meet with the ALM hotel rental pool people that are located just behind the front desk area to learn about their pool rental program.  Most units are already in the hotel pool rental program.  Aunty met with Willie (Wilhelmina) and signed up to be part of the hotel pool because the program is so convenient for people like Aunty.

6.  Pay (with a cashiers check) the balance due and sign final escrow papers at the designated title company office.  The deed will then be recorded with you as the new owner.

7.  Congratulations, let the cash flow begin!  As an owner you can reserve your room for friends or family at special discount rates ($105 for the studio), as well as blocking off your room for yourself or your guests for free, though subject to a $40 checkout fee.

Time passed and lessons learned

Aunty will be updating about the wonderful world of hotel ownership in a future post.  The learning curve has been rather steep.  The searching and buying part have been fun and exciting.

Cash flow appears, as well as expenses.

Please stay tuned as Aunty, the hotel mogul wannabee’s saga unfolds.

Meanwhile, here is a list of Aunty’s “team” that have proved themselves to be awesome:

Realtor and/or financing agent:  Noreen Ho  of Savvy Realty (808) 398-8528  nho398@gmail.com

Attorney for LLC formation:  Aaron Mun of Kobayashi Sugita and Goda at (808) 535-5738 or arm@ksglaw.com

Jan 2017 update:  Aunty tried to win an auction last month, but the bank representative shot her down.

Also, cash flow from the “cheaper” units in the Kona tower is dropping.  Perhaps the new owners of the hotel operations (Mantra Group) are offering cheaper booking rates to contract guests.  It is affecting the monthly cash flow for these units, in a junk way. 

Towards the end of 2016, fewer and fewer units in the hotel were available to buy because the offerings were being snapped up like hotcakes.  However, this trend of lower rental income might have current owners dumping their units on the market.  The Ala Moana Hotel Board meeting is scheduled in February.  It will be interesting to see and hear from the new owners, and Aunty will definitely be there.

September 2017 update:  Mahalo for the comments that previous owners have made.  Sadly, they have had very poor experiences and results and have had negative cash flow and/or lost profits.  There ARE better deals out there – and perhaps Aunty’s bias toward the hotel is too positive, but for now, Aunty still likes investing there. 

A caution to prospective new owners, though.  When you let friends and family stay for “free” as owner guests – they are required to pay $40 upon checkout for a cleaning fee, or more if they utilize the daily parking ($20 or $25 if valet) and each extra cleaning day is $18.  That is a really great deal for them, but you, the owner, will have your net rental check from the hotel pool cut by about $100/day.  Be aware of this and limit those owner guest passes unless they really are great friends and family.

Swap Meet up for Bloggers

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Swap meeters with Randy

Swap meeters with Randy

A long awaited day arrived this morning at the Kam Swap Meet with  Art and Kay of Musings and Jalna & sisters of Photos by Jalna.

This was an EARLY morning meeting, which Aunty is NOT good at, but, when the incentive is there, Aunty manages to crawl out of bed with the chiming of an alarm, down her cereal and coffee, gather what needs gathering, and out the door in many minutes flat.  Having tattooed eyeliner is a huge time saver (a future post).

NO traffic at 6:50 am from Kaimuki to Pearl City!  Zoom zoom zoom!  Parking was easy enough if one wasn’t picky, and the Kam Swap Meet is free!  That was a pleasant surprise, and well worth the price of admission, snark snark!  Money saved in order to buy more stuff.

Jalna and her sisters are swap meet regulars and know EVERYone.  We all stopped by Randy’s Knick Knacks in stall 17.  He seemed to be everybody’s favorite vendor with a simple roll up mat and little plastic bagged treasures for $1.

Aunty found a few glass dishes and bought 7 yards each of great upholstery material at $1.50 per yard!  Holy moly, for $21, Aunty got 14 yards of fabric.  Just a week earlier at Fabric Mart, 5 yards costed Aunty almost $50, and the swap meet find was just as nice or better!  It was heavy carrying it around, which made a drop off trip to the car a must.

Aunty also scored a very old French book “Un Sejour a Hawai” published in 1881 for $2.  Another vendor had what looked like a wonderful original watercolor of a plumeria lei, but upon closer look (Aunty put on her glasses), this was a reprint and so Aunty saved some money.  A really cute Louis Vuitton bucket purse also escaped from Aunty because the vendor had left by the time Aunty was on her second pass around.  Aunty saved money.

Actually, what Aunty did spend money on was food.  Filipino food that called out and tantalized Aunty.  So she bought pork lechon, cut up and packaged with a tasty sauce for $12.50 (very yummy), pancit – Filipino stir fried noodles that are good with kalamansi limes (though Aunty prefers it with vinegar),  and pinakbet – vegetable stir fry with shrimp or fish (but this one didn’t have shrimp or fish).  Banana lumpia would have made it complete but by this time, Aunty was hot, tired, and wanted to go home with her goodies.

It was a potentially dangerous day at the Kam Swap Meet.  The lure of things that Aunty did not need and the anticipated promise of so much more temptations – all at prices too good to pass on.

It was great to see Jalna and her sisters, and Kay and Art, each of us finding our own little interests in various vendors, then meeting up at the end of each row before exploring the next.  Sweet Didi gave Aunty her own special salt mixture concoction – which will be used on the next perfect steak.  Jalna gave some of the special fresh Waimana eggs that she swears by.

This fun day will be haunting.  What treasures can be found there next week, or the week after?  The only way to know, is to be there.