I have rentals in 3 states and wanted to bring up Hawaii. Unlike in San Diego which has been one nightmare after another and Houston which has also caused me a good amount of lost sleep, on 5 properties in Honolulu (big and small) I've never once in 7 years had to evict or even consider evicting a single tenant. Also, I've rarely had a place sit vacant longer than a couple weeks. It is still a very challenging place to do business. The Hawaii General Excise Tax (GET) for example is a real pain in the butt and takes 4.5% right off the top of gross rent (no deductions allowed). Fortunately property taxes are amazingly low (like .25% of the home's value give or take) which helps make up for it. Another issue for some is unless you live in Hawaii, you have to hire a professional manager to do your work. Oh, these are regular homes, not vacation rentals. The biggest downer is you cannot turn a regular home into a vacation rental which would be so nice to do given the location. You have to buy one that is already zoned for it. Unfortunately, for what it cost to maintain even a modest vacation rental, you might as well just save the cash, fly to Hawaii 1st class and rent a corner suite at the Hilton a month out of the year. Any kind of ownership with the word vacation attached to it should be looked at very, very cautiously and in most cases probably treated like bubonic plague (at least from a financial perspective). And that's my scoop on Honolulu, Arguably better for landlords than Houston, way better than San Diego. Although, given the choice on where to actually live, I still choose San Diego.