@Scott B. not an expert by any means in Waikiki but I have been there a time or two. I would imagine a couple of different factors playing a part in the price difference..... View, building condition, proximity to shopping/restaurants on Ala/Moana drive/Kalakaua Dr. etc.
Seemed to me there are some nicer buildings there and then across the street away from the beach, the buildings aren't well taken care of. Not sure if this helps at all.... Good luck!!
Originally posted by @Sayed Jaffar:
As @Alex Presnell mentioned leasehold and fee simple are the two main reasons for difference in prices. Additionally, vacation rentals is a very sensitive issue here in Honolulu these days. Every building in Waikiki is governed by their own owners associations, and a big majority of these associations actually despise short term or vacation rentals in their respective buildings. If you are considering buying ANY property in Waikiki and turn it into a vacation rental, I am afraid that would be a big mistake and a very costly one.
There are buildings in Waikiki which falls under resort zone, and those buildings will allow you to operate short term rentals lawfully. Keep in mind, short term rentals here means between 30 days and 180 days. If you are considering doing daily rental, you have to again look for another type of building which will allow you to do that. Again, there are a very few buildings which legally allow you to operate daily rentals.
I am a vacation rental operator and I am doing this for the past many years. If you would like to get more information about the type of buildings suitable for the kind of investment you are intending, send me private message. Aloha!
Another thing to check:
Land lease vs Fee Simple. Land lease units will be MUCH cheaper and for a reason. I avoid at all costs and there’s a ton of them on the islands.
Thank you for your replies. That's what I was wondering about was if it was like how mobile home housing where you are leasing the land but owning the building.
I am aware about the Short term rental situation in Waikiki as well as the zoning. I would definitely check to make sure the place allows for daily rentals before moving forward. I have filters set up to alert me of properties that allow for vacation rentals/short term rentals and then would just inquire about the place to make sure daily rentals are allowed and then confirm with HOA board.
Good job getting into the STR business, it's a blast!