Rental Property Investor · Member since 2019 · 67 posts · 29 votes
I've been to Hawaii four times in the last 5 years. I love the Big Island. I am devising a plan to purchase something. What I want to know, is it really worth it to own a STR on the Big Island? Prices are rather steep, and I can't see how people are making money vs. the obligations associated with STR...and the high mortgage. Lease hold, HOA, etc... seem steep to me.
Real Estate Broker · Wailea, HI · Member since 2016 · 134 posts · 77 votes
3y
@Lauren Ruppert Great question. Can you make money? Maybe, but its tough. You need to find the right property in the right location and at a price that makes the numbers work. Challenge with the big island is you can only do STR's in specific visitor designated zones. And you also have to consider the fact that there are a decent number of resorts you have to compete with.
Again, it can be done but patience and running numbers will make all the difference here.
I've been to Hawaii four times in the last 5 years. I love the Big Island. I am devising a plan to purchase something. What I want to know, is it really worth it to own a STR on the Big Island? Prices are rather steep, and I can't see how people are making money vs. the obligations associated with STR...and the high mortgage. Lease hold, HOA, etc... seem steep to me.
All comments are welcome!
It's not just worth, I can exchange 5 bay area homes to one small condo in Kona and that's me :)
@Lauren Ruppert Great question. Can you make money? Maybe, but its tough. You need to find the right property in the right location and at a price that makes the numbers work. Challenge with the big island is you can only do STR's in specific visitor designated zones. And you also have to consider the fact that there are a decent number of resorts you have to compete with.
Again, it can be done but patience and running numbers will make all the difference here.
the key thing is one need to put 37% down to get DSCR 1.1 after all expenses (including PM and utilities).