Short Term in Hawaii?

[Sam Booth]

Anyone have advice about buying and short term renting a condo or apartment from a building? I see some deals that look decent and wondered if it's worth it and if the laws make it possible or a pain to short term rent these sort of units?

It sounds like it could work in an "resort area??"

[Carlos Ptriawan]

Quote from @Eduardo Bilbao:

Quote from @Bryan Vukelich:

Aloha @Sam Booth

If you analyze Hawaii numbers compared to other spots in the mainland then it makes way more sense to invest in the mainland. Now if you as a person rather than an investor want to own property in Hawaii then go for it but your opportunity cost is not being taken into account. 

I think the biggest mistake for investors that want to invest in Hawaii is if they only look for financial benefit only. Because it's guaranteed mainland would be better if one is looking for a return only. To invest in the island the investor must love the island,the lifestyle and the culture. For example my motivation is to invest in HI, but to live/work remote there , to retire ; so even with all STR difficulty that's created by gov. , I see that only as a small hassle.

Also many Hawaiian towns offered a lot of varieties in terms of lifestyle, you could have Waikiki but if you are into Oceanport you have Kona and Hilo as well, with Maui if you are into whitesand beach. This is the biggest factor I think. What lifestyle fits you and your budget.

[Mark Waite]

Quote from @Carlos Ptriawan:

Quote from @Eduardo Bilbao:

Quote from @Bryan Vukelich:

Aloha @Sam Booth

If you analyze Hawaii numbers compared to other spots in the mainland then it makes way more sense to invest in the mainland. Now if you as a person rather than an investor want to own property in Hawaii then go for it but your opportunity cost is not being taken into account. 

I think the biggest mistake for investors that want to invest in Hawaii is if they only look for financial benefit only. Because it's guaranteed mainland would be better if one is looking for a return only. To invest in the island the investor must love the island,the lifestyle and the culture. For example my motivation is to invest in HI, but to live/work remote there , to retire ; so even with all STR difficulty that's created by gov. , I see that only as a small hassle.

Also many Hawaiian towns offered a lot of varieties in terms of lifestyle, you could have Waikiki but if you are into Oceanport you have Kona and Hilo as well, with Maui if you are into whitesand beach. This is the biggest factor I think. What lifestyle fits you and your budget.

@Carlos Ptriawan agree to some degree, especially in today’s market. However, I and other agents have mainland clients who purchase in Hawaii only for the financial benefits. But they are also very disciplined with their investment strategy and will pass if the property doesn’t pencil out.

Granted there are far more buyers who are getting into the STR business as a lifestyle purchase.

Opportunities still exist. You just need to do your homework and be ready to move if the deal makes sense.

[Carlos Ptriawan]

Quote from @Mark Waite:

Quote from @Carlos Ptriawan:

Quote from @Eduardo Bilbao:

Quote from @Bryan Vukelich:

Aloha @Sam Booth

If you analyze Hawaii numbers compared to other spots in the mainland then it makes way more sense to invest in the mainland. Now if you as a person rather than an investor want to own property in Hawaii then go for it but your opportunity cost is not being taken into account. 

I think the biggest mistake for investors that want to invest in Hawaii is if they only look for financial benefit only. Because it's guaranteed mainland would be better if one is looking for a return only. To invest in the island the investor must love the island,the lifestyle and the culture. For example my motivation is to invest in HI, but to live/work remote there , to retire ; so even with all STR difficulty that's created by gov. , I see that only as a small hassle.

Also many Hawaiian towns offered a lot of varieties in terms of lifestyle, you could have Waikiki but if you are into Oceanport you have Kona and Hilo as well, with Maui if you are into whitesand beach. This is the biggest factor I think. What lifestyle fits you and your budget.

@Carlos Ptriawan agree to some degree, especially in today’s market. However, I and other agents have mainland clients who purchase in Hawaii only for the financial benefits. But they are also very disciplined with their investment strategy and will pass if the property doesn’t pencil out.

Granted there are far more buyers who are getting into the STR business as a lifestyle purchase.

Opportunities still exist. You just need to do your homework and be ready to move if the deal makes sense.

Sure, my STVR is fully booked until May 2023 actually. I did a lot of calculations most STVR in HI would be okay financially if the down is above 45% with consideration of 20% PM Fee. My only shock is the Hawaiian Electric cost.

Btw any of you guys invested in multiple island? I am wondering if we can work live between Maui and BI. Now I know to do a lot of things in BI I'm wondering the same about Maui. I'm mostly interested in the non-financial aspect of it.

[Henry T.]

Quote from @Carlos Ptriawan:

Quote from @Mark Waite:

Quote from @Carlos Ptriawan:

Quote from @Eduardo Bilbao:

Quote from @Bryan Vukelich:

Aloha @Sam Booth

If you analyze Hawaii numbers compared to other spots in the mainland then it makes way more sense to invest in the mainland. Now if you as a person rather than an investor want to own property in Hawaii then go for it but your opportunity cost is not being taken into account. 

I think the biggest mistake for investors that want to invest in Hawaii is if they only look for financial benefit only. Because it's guaranteed mainland would be better if one is looking for a return only. To invest in the island the investor must love the island,the lifestyle and the culture. For example my motivation is to invest in HI, but to live/work remote there , to retire ; so even with all STR difficulty that's created by gov. , I see that only as a small hassle.

Also many Hawaiian towns offered a lot of varieties in terms of lifestyle, you could have Waikiki but if you are into Oceanport you have Kona and Hilo as well, with Maui if you are into whitesand beach. This is the biggest factor I think. What lifestyle fits you and your budget.

@Carlos Ptriawan agree to some degree, especially in today’s market. However, I and other agents have mainland clients who purchase in Hawaii only for the financial benefits. But they are also very disciplined with their investment strategy and will pass if the property doesn’t pencil out.

Granted there are far more buyers who are getting into the STR business as a lifestyle purchase.

Opportunities still exist. You just need to do your homework and be ready to move if the deal makes sense.

Sure, my STVR is fully booked until May 2023 actually. I did a lot of calculations most STVR in HI would be okay financially if the down is above 45% with consideration of 20% PM Fee. My only shock is the Hawaiian Electric cost.

Btw any of you guys invested in multiple island? I am wondering if we can work live between Maui and BI. Now I know to do a lot of things in BI I'm wondering the same about Maui. I'm mostly interested in the non-financial aspect of it.

 Yes, Hawaiian electric is about 5 times what you're used to paying in the states.  And watch out for those eroding shorelines too. It's a big problem.

[Philip Lindsey]

I live in Hawaii and am working on a STR project myself. Generally, unless it's designated as a vacation rental or you get a Bed & Breakfast allowance, then 6 months is the shortest term lease allowed. Someone advised you to check with a realtor and that sounds like good advice, but you can also walk into the Planning Dept with a specific property address and find out some things that way.

If it's a property that you're considering living at and renting extra rooms that is the kind of scenario that can qualify for Bed & Breakfast if the zoning is right. My project is zoned Multi Family which allows for Bed & Breakfast. I'm told that that "Apps used such as Airbnb or VRBO are beside the point). 

[Matthew Brown]

Quote from @Bryan Vukelich:

Hi @Eduardo Bilbao - I just want to clarify that the STR situation on O'ahu has cleared up significantly and things have turned out quite well. Department of Planning and Permitting opened up the STR registration on October 24th, 2022 and once you submit the required documentation and pay the fee, you will receive authorization to do nightly rentals. Key thing is that your building has to be recognized as vacation rental building and the building association has to allows STR's. Clients have told me it the entire process went smoothly for them.

So at this point, I see no reason not to invest in an STR on O'ahu if it fulfills your real estate goals.

Aloha, 

 Hi @Bryan Vukelich, do you know if Fairways Edge at Ocean Point in Ewa Beach allows 30 day rentals?

[Carlos Ptriawan]

Quote from @Matthew Brown:

Quote from @Bryan Vukelich:

Hi @Eduardo Bilbao - I just want to clarify that the STR situation on O'ahu has cleared up significantly and things have turned out quite well. Department of Planning and Permitting opened up the STR registration on October 24th, 2022 and once you submit the required documentation and pay the fee, you will receive authorization to do nightly rentals. Key thing is that your building has to be recognized as vacation rental building and the building association has to allows STR's. Clients have told me it the entire process went smoothly for them.

So at this point, I see no reason not to invest in an STR on O'ahu if it fulfills your real estate goals.

Aloha, 

 Hi @Bryan Vukelich, do you know if Fairways Edge at Ocean Point in Ewa Beach allows 30 day rentals?

 One thing you could do is checking the list from the same apartment complex in Zillow or you call them directly.

[Bryan Vukelich]

Hi @Matthew Brown - I messaged you directly. Happy to answer any other questions you have.