Thinking of buying a condo in Hawaii to rent out...

[Shannon M.]

My husband and I have been looking for investment property for about 6 months now with no real luck. I’ve been entertaining the idea of purchasing a condo in Hawaii and renting it out... any thoughts on this?

[Mike V.]

@Shannon M., purchasing a condo in Hawaii can be very successful.  It's all I do... Few things to keep in mind:

1.  It will require 30% down

2.  You'll need to self manage or use someone like myself who will do it cheaper. You won't make a dime using a 'full service management company'.

3.  If you're going to do it yourself, expect to put in a decent amount of time getting yourself setup and running.  You will need to be attached to your phone 24/7 to handle the inquiries.

I don't know why people here repeat how impossible Hawaii is. I average 20% per property COC ROI WITH a mortgage., the AOAO fees, and high electric bills. Anyone who can't net 10% doing it themselves doesn't know what they're doing. I even just finished a cash out refi on one of mine and pulled out 200k to purchase my next one... and i'm still cash flowing 12% (with my pre refi numbers) with the larger mortgage and I only put in 160k 3 years ago. It's literally infinity roi now.

I'm about to put in an offer on one that should net me 25% coc roi.  Don't let these guys scare you away.  You just need to purchase the correct unit AND set it up / market it correctly on the listing sites.