Investment Strategies on/off Oahu

Honolulu, Hawaii
General Real Estate Investing
4yFollow

Investment Strategies on/off Oahu

Benjamin Hartiens
New to Real Estate · Oahu, HI · Member since 2021 · 3 posts · 2 votes

Aloha yall,

I have lived in Oahu for about 4 years now and have seen the market just skyrocket. While I don't expect it to keep this rate of appreciation, I do expect it to still be higher than the mainland annually. With that being said, what are some strategies for a newbie investor to acquire a second home here? I am in escrow for my primary residence out in Kapolei but want to keep my momentum, whether it be strategizing, planning out my next year, trying to raise capital, etc. I was super interested in Airbnb Arbitrage to use the funds to acquire more properties but as you know here on island, it's a nightmare for STR. If investors that live on island are investing out of state, what markets are yall in? Is it even worth investing here if you arent doing multifam? I haven't seen a lot of traffic on the forum for Oahu.

Any advice is much appreciated!

Best,

Ben

0Reply
18 views

5 Replies

Jump to latestLatest
  • Jimmy Woodard
    Walnut Creek, CA · Member since 2020 · 285 posts · 318 votes
    4y

    @Benjamin Hartiens in Honolulu your best bet for STRs is the Waikiki area which allows it. The problem is that prices are out of whack with potential STR revenue that it's hard to find good returns.

    However, thanks to technology you can self-manage an STR remotely from pretty much anywhere in the country. If you need any advice on how to do so and/or find a non-HI market, feel free to DM me!

    0Reply
  • Joel BongcoBusiness Member
    Investor · Honolulu HI & Los Angeles, CA · Member since 2018 · 369 posts · 176 votes
    4y

    @Benjamin Hartiens - The REI market in Hawaii is tricky, however, doable. Locals here do in state and out of state investing. If you want to raise capital, in state investing using a subject to/carry back is a great approach. Aloha, Joel

    [email protected]808-427-2444
    Inspired Life Investments LLC.
    WebsiteView Page
    0Reply
  • Mio Chee
    Investor · Honolulu, HI · Member since 2022 · 51 posts · 41 votes
    4y

    Hi Benjamin, I am also from Honolulu, Hawaii and have been a long distance hands off landlord for more than 7 years now. I have been living here more than 20 years now. Initially, I was looking into buying a rental in Honolulu, but it was nearly impossible to find a cash flowing property that is in a good condition so Have you looked into turnkey? After giving up on Oahu, I decided to use a turn key company. I bought 3 thru them : TN, IN, and OK (all SFR). Planning to buy another one in FL next.

    0Reply
  • Robert Koncal
    Investor · Honolulu, HI · Member since 2019 · 46 posts · 11 votes
    4y

    @Benjamin Hartiens congratulations on your primary residence! As far as investing in Oahu, you are right it is a tough spot to find a cashflowing property. We are in an appreciation market rather than cashflow. However, if you can find seller financing deals or sub to properties you can cashflow. 

    The other way is to look for a distressed property and focus on flipping. That's what most of the investors I know as well as myself do. Because the projects are usually more extensive the profit margins are also higher. You can use the proceeds to invest in something out of state with positive cashflow. 

    If you're going after cashflow look at mid-west states. Personally, I invest in MO. Good luck and let me know if you have any questions. 

    0Reply
  • Michael BorgerPro Member
    Rehabber · San Diego, CA · Member since 2010 · 499 posts · 206 votes
    4y

    Aloha, @Benjamin Hartiens - as you can tell, most investing is focused on flips. I have about 10 in various stages at the moment from CPRs and new build to carryback sub-2s and short sales. It's a different business entirely than STRs, but it's a way to make money in the islands. You just have to be ok with active income there and passive somewhere else (broadly speaking).

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free